Frequently asked questions relating to Masthaven Bank transfer of equity
- I jointly own a flat in Littleborough
, with a Masthaven Bank loan with my ex partner. He and his fiance are going to acquire my share. We had approval from Masthaven Bank to replace my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Masthaven Bank (supposedly). Can we do the Land Registry change?
- I bought a flat with a friend six years ago Since then, we have both got married. We are now seeking to do a transfer of equity so my name is removed the Masthaven Bank mortgage. There is a 30k difference between the value the Masthaven Bank hold and what the property would sell for currently. Can you offer any advice?
- I got my Decree Absolute four years ago. I simply never got around to transfer ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Masthaven Bank is willing to transfer the property and loan in my name (affordability checks done). Does she need a solicitor?
- I am looking for a conveyancing solicitor to handle my transfer of equity. Masthaven Bank are dealing with the remortgage. I thought of asking my financial adviser. I understand he may receive a referral fee for recommending someone, but also of benefit will be that he knows the lawyer, has a working relationship with them. Is my logic misguided?
- As things stand I have a joint Masthaven Bank mortgage with my brother and am investigating the option of him assuming responsibility for the outstanding mortgage and extracting myself from it, so as to enable me to purchase a place with my partner. The outstanding mortgage is about 300k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty involved?
- My mother died seven months ago leaving a unencumbered semi to me and my half brother in equal shared. He has always lived in the house, there was a clause in her will specifying that the housecould not be sold for 2 years following her death so he could continue to live there for a specified time frame. He now wishes to remain in the property beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the usual way to buy my share?
- Is it sensible to stop the direct debit for my mortgage with Masthaven Bank once a date for my remortgage and transfer of equity has been set?
Examples of information requested in a lawyer questionnaire concerning a Masthaven Bank Transfer of Equity
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
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please provide the details of anyone to be extracted from the title deeds?
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
General Advice to read in further to the above Masthaven Bank transfer of equity Info :
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
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to 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 market value of the property at finalisation of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Masthaven Bank.
Preparing the Transfer of Equity with a Masthaven Bank Mortgage
When it comes to preparing the the Land Registry documents your conveyancing solicitor 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.