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Questions and answers: Masthaven Bank transfer of equity

  • My current home loan is with Masthaven Bank. Can I transfer equity to someone who is not yet 18 years old?
  • What are the average solicitors fees are for a transfer of equity? I'm in the process of remortgaging - moving over to Masthaven Bank - and have been quoted £350 excluding VAT by Masthaven Bank's approved conveyancer, Have I been over quoted?
  • Do I need legal advice when doing a transfer of equity where the mortgage is to remain with Masthaven Bank?
  • I am considering remortgaging my property in Sedgefield does my lawyer have to be on the Masthaven Bank Conveyancing panel. The conveyancing also involves a transfer of equity.
  • My father passed away half a year ago leaving a unencumbered bungalow to me and my step brother 50:50. Having continues to reside at the house, there was a provision in the will saying the premisescould not be sold for 24 months following her death so he could continue to live there for a specified time frame. He now wants to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the usual way to acquire my half from me?
  • My Masthaven Bank home loan we jointly entered into with ex, he has agreed to come off the deeds and put the house in my name alone. Masthaven Bank have consented to the transfer of equity to me solely. Do Masthaven Bank call my boss to verify my salary?
  • What if my application doesn't meet Masthaven Bank lending criteria for a transfer of equity?

Sample of questions in a conveyancing solicitor questionnaire concerning a Masthaven Bank Transfer of Equity

Please provide the details of anyone to be extracted from the property title?

Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?

Please provide the details of anyone to be added to the title deeds?

Have you approached Masthaven Bank to obtain consent to the Transfer of Equity

Is the transfer of equity subject to a court order? If yes please supply a copy

Has one of the registered owners died? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..

Important warnings to consider in supporting the above Masthaven Bank transfer of equity Advice :

Tax and Legal

There are numerous potential tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Masthaven Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in violation of the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made as a result of an Order of the Court, then Insolvency Indemnity Insurance is not required. In other cases, where a property is being transferred at less than market value between joint owners, an Insolvency Act Indemnity Insurance policy may be required. This is something that that your conveyancing solicitor will check with Masthaven Bank This is because, if the outgoing party is made bankrupt in the future, their Trustee in Bankruptcy could argue that they had transferred the property in order to avoid their creditors and apply to the Court to have the transaction set aside. If this happens, it could affect your lender or a future buyer from you as they would lose the property and the lender may not get back what they have loaned to you. The Insolvency Act Indemnity Insurance policy only protects lenders such as Masthaven Bank or future buyers from you. If there is no mortgage and the outgoing owner is made bankrupt, there is a risk to you that you could lose your home if the transfer is set aside. The cost of the Insolvency Act Indemnity Insurance policy is dependent on the valuation of the property at the time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Masthaven Bank your property may be repossessed.

Preparing the Transfer of Equity with a Masthaven Bank Mortgage

When it comes to preparing the the Land Registry documents your conveyancer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Masthaven Bank is joining in the transfer to release someone from liability, put the release in the ‘additional provisions’ panel if someone is entering into a covenant relating to the charge, place it in the ‘additional provisions’ panel stamp duty land tax is not payable when there is no chargeable consideration for the transfer (Schedule 3, paragraph 1 of the Finance Act 2003). In the case of a transfer subject to a charge (even if the transfer is by way of gift) or if a property has been transferred for no value and there is an associated discharge, HMRC would view this as an assumption of an existing debt by the purchaser (Schedule 4, paragraph 8 of the Finance Act 2003) and stamp duty land tax may be payable if you wish you may state in the ‘additional provisions’ panel that ‘This transfer is made subject to a charge dated… in favour of…’

On form AP1, your conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided on this webpage is for general information and only applies to England and Wales. It should not be regarded as advice for members of the public who should contact their lawyer,mortgage broker, insurer and accountant for specific advice relating to transfer of equity. Whilst we endeavour to keep the information up to date and correct we do not make any representation or warranties of any kind about its completeness, accuracy, reliability or suitability. Any reliance you place on the information is strictly at your own risk. Lexsure will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.


Frequently asked questions relating to Masthaven Bank transfer of equity