Questions and answers: ModaMortgages transfer of equity

• I plan to refinance my apartment in Friern Barnet moving from Virgin Money to ModaMortgages. The home is jointly owned but I would like it to be in my sole name when I switch. My husband has verbally consented to this and is willing to transfer equity but neither of us want to incur conveyancing solicitor fees.
• I own a flat in Wakefield , with a ModaMortgages loan with my former husband. He and his new partner are going to acquire my share. We had consent from ModaMortgages to substitute my name with hers. The transfer of equity needs to be done by a conveyancer for ModaMortgages (apparently). Is it possible for us to do the Land Registry formalities?
• Law week I split up with my ex of 18 years. I'm now living with my mum and dad and she wants to remain in the flat and pay me off. What percentage do I get. Is it half of the equity after paying off the ModaMortgages home loan? I assume proper valuations are necessary but I would like to be confident that I'm getting I am not being taken advantage of
• Can you tell me how to have someone removed off the deeds to a house if the mortgage is with ModaMortgages
• My partner and I jointly own a property in Wakefield . Mortgage is with ModaMortgages. I want to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Is this likely to be straightforward?
• What should I be budgeting for when it comes to what conveyancing fees are for a transfer of equity? I'm in the process of remortgaging - new loan with ModaMortgages - and have been quoted Four Hundred pounds excluding VAT by ModaMortgages's approved conveyancing solicitor, Have I been over quoted?
• How and when do I pay the Stamp Duty Land Tax due for the transfer of equity in my home in my name alone which is taking place at the same time as a remortgage with ModaMortgages?

Questions that your conveyancing solicitor is likely to ask regarding your ModaMortgages Transfer of Equity

Caveats to be read in further to the above ModaMortgages 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 ModaMortgages 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 terms are not adhered to you may be in breach of the lease. This could trigger 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 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 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 finalisation 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Content 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.