Recently asked questions relating to Masthaven Bank transfer of equity

• I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
• My father died seven months ago leaving a unencumbered semi to me and my step brother equally. He has always lived in the house, there was a clause in her will specifying that the propertycould not be sold for 24 months following her death so he could reside there for a prescribed period. He now says he would like to remain in the house beyond the specified 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 traditional way to acquire my equity?
• My former husband are looking to get a conveyancing solicitor lined up for a new mortgage with Masthaven Bank. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over England and Wales. How necessary is it to instruct a conveyancer local to us?
• My financial adviser has suggested using their conveyancer for my Transfer of Equity plus remortgage with Masthaven Bank - Is it not simpler easier to just instruct them?
• As things stand I have a joint Masthaven Bank mortgage with my step-brother and am looking into the possibility of him taking on the outstanding mortgage and removing myself from it, to enable me to buy a property with my soon-to-be-wife. The outstanding mortgage is approx 250k, and the property value is approx 600k. Is this a transfer of equity? Is stamp duty due?
• What if my application doesn't meet Masthaven Bank lending criteria for a transfer of equity?
• I got my Decree Absolute four years ago. I simply never got around to change the ownership from the current 'joint' status to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Masthaven Bank is content to transfer the property and loan in my name (financial checks done). Does my ex need a conveyancer?

Information that may be required from your lawyer is likely to ask regarding your Masthaven Bank Transfer of Equity

General Advice to read in in addition to the above Masthaven Bank transfer of equity Info :

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 properties

If your property is 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 conditions are not strictly observed you may be in breach 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 varies based on the market value of the property at finalisation 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 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 contained within 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.