Common questions relating to ModaMortgages transfer of equity

• Is it possible to transfer the equity held in my property with my ModaMortgages mortgage?
• My former wife are looking to get a conveyancer in place for a refinance with ModaMortgages. Transfer of Equity conveyancing is also necessaryI have used the different rating based services and the results are from all over UK. How necessary is it to appoint a conveyancer local to us?
• My wife and I equally own a buy to let. I am a higher rate tax payer. Ideally I would like to do a transfer of equity into her name in order reduce our tax on the letting income. If ModaMortgages are happy with this the legal fees are inexpensive. What are the implications when we sell? As I would no longer be on the deeds would I lose my CGT relief.
• What is the process for having someone removed from the title documents to a property if the home loan is with ModaMortgages
• I recently bought a apartment without my partner's name on the deeds. My said it is due to the fact that she is not in the mortgage with ModaMortgages. Is it possible for me to put her name on the deeds?
• I am planning on removing a name from a joint mortgage and the ModaMortgages require me to use a to carry out the paperwork. Can you recommend a reasonably priced Miles Platting to deal with the transfer of equity? They need to be on the ModaMortgages conveyancing panel.
• As things stand I have a joint ModaMortgages mortgage with my brother and am investigating the feasibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, so as to enable me to purchase a place with my fiance. The outstanding mortgage is in the region 175k, and the property value is approx 450k. Is this a transfer of equity? Is land tax payable?

Questions that your conveyancer could ask regarding your ModaMortgages Transfer of Equity

Caveats to be read in conjunction with the above ModaMortgages 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 ModaMortgages conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to an Order of the Court, then Insolvency Indemnity Insurance is not required. In other situations, 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 lawyer will check with ModaMortgages 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 ModaMortgages 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 valuation of the property at the time of completion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a ModaMortgages 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 ModaMortgages 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. Lender Panel.com Ltd will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.