Questions and answers: Masthaven Bank transfer of equity

• I currently have a joint Masthaven Bank mortgage with my step-brother and am looking into the option of him assuming responsibility for the whole mortgage and removing myself from it, to enable me to purchase a place with my partner. The outstanding mortgage is approx 300k, and the property value is about 600k. Is this a transfer of equity? Is land tax involved?
• Masthaven Bank have just agreed I can take over the home loan on the house. I previously applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds as well?
• My mortgage broker has suggested using their conveyancing solicitor for our Transfer of Equity plus remortgage with Masthaven Bank - Surely it’s easier to just instruct them?
• Is it possible to apply to borrow more money from Masthaven Bank as part of a Transfer of Equity?
• What should I be budgeting for when it comes to what legal fees are for a transfer of equity? I need to transfer equity and refinance - new loan with Masthaven Bank - and have been quoted Four Hundred pounds excluding VAT by Masthaven Bank's appointed conveyancing solicitor, Is this is a good price or not?
• My father passed away half a year ago leaving a loan-free house to me and my step brother in equal shared. Having continues to reside at the premises, there was a clause in the will saying the housecould not be sold for three years after her passing so he could remain there for a specified time frame. He now wishes to remain in the house beyond the specified period. We have discussed 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 traditional way to acquire my share?
• What are my options where I am unhappy with the lawyer who conducted my transfer of equity transaction?

Information that may be required from your conveyancing solicitor could ask about your Masthaven Bank Transfer of Equity

Caveats to be read in supporting the above Masthaven Bank transfer of equity Questions and Answers :

Tax and Legal

There may be various 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 premises

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such terms are not adhered to you may be in violation of your covenants under 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 conclusion of the transfer of equity transaction.

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 lawyer 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.