Common questions relating to ModaMortgages transfer of equity

• I plan to remortgage my apartment in Timperley moving from Godiva Mortgages to ModaMortgages. The apartment is currently in joint names but propose for it to be in my name only when I switch. My husband has agreed to this and is willing to sign a form but neither of us want to get a second conveyancer involved.
• I am filling out a ModaMortgages transfer of equity application and have come to the section that asks about debts etc. I do some debts that I have been reducing over a long period, I understand that they have long since disappeared from my credit records. Am I obliged to set these out?
• I own a property in Crabtree , with a ModaMortgages mortgage with my former partner. He and his fiance are going to acquire my share. We had approval from ModaMortgages to remove my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for ModaMortgages (supposedly). Is it possible for us to deal with the Land Registry formalities?
• Will I incur any fees for a Transfer of Equity where the existing mortgage is with ModaMortgages?
• What are my options where I am dissatisfied with the lawyer who conducted my transfer of equity transaction?
• Have recently split up with my partner of thirty years. I'm now back with my mum and dad and she wishes to remain in the flat and buy me out. What percentage am I entitled to. Is it half of the equity after paying off the mortgage with ModaMortgages? I assume proper valuations are necessary but I would like ensure that I'm getting the best deal
• ModaMortgages yesterday agreed I can take over the mortgage on my home. I had applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry on top?

Sample of questions in a conveyancer questionnaire relating to ModaMortgages Transfer of Equity

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

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 ModaMortgages 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 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 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 conveyancer 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 market value 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 conveyancing solicitor 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 conveyancing solicitor 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 does not constitute 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.