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Questions and answers: ModaMortgages transfer of equity

  • What can I do where I am unhappy with the conveyancer who conducted our transfer of equity conveyancing?
  • Me and my former partner and I are searching for a value for money conveyancing solicitor to help me sell in a transfer of equity and remortgage with ModaMortgages. I I am fearful of being overcharged and there are various conveyancing practices who do transfer of equity conveyancing out there...who's the best?
  • I plan to refinance my maisonette in Romsey switching from Santander to ModaMortgages. The home is jointly owned but propose for it to be in my sole name when I switch. My husband is OK with this and is happy to sign a form but neither of us want to incur lawyer fees.
  • I am trying to find a conveyancing solicitor to deal with my transfer of equity. ModaMortgages are dealing with the remortgage. I considered asking my mortgage broker. I understand he may receive a kickback for suggesting someone, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Is my logic misguided?
  • I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
  • The mortgage broker has suggested using their conveyancer for our Transfer of Equity plus remortgage with ModaMortgages - won’t it be advisable to just instruct them?
  • Been reviewing consumer forums that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor where I need to be transferring equity and at the same time remortgaging with ModaMortgages

Examples of information requested in a lawyer questionnaire relating to ModaMortgages Transfer of Equity

Is the transfer of equity subject to a court order? If yes please supply a copy

Please provide the details of anyone to be removed from the title deeds?

Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Please provide the name(s) and addresse(s) of those who jointly own the property with you?

If you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Is it the case that one of the registered proprietors passed away? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.

General Advice to read in conjunction with the above ModaMortgages transfer of equity information :

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

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 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 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 valuation of the property at finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with ModaMortgages your property may be repossessed.

Preparing the Transfer of Equity with a ModaMortgages Mortgage

When it comes to preparing the the Land Registry documents your lawyer 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 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.


Frequently asked questions relating to ModaMortgages transfer of equity