Top seven questions relating to ModaMortgages transfer of equity

• Me and a friend got a joint mortgage with ModaMortgages on a flat about a year ago. I am now looking to get a property on my own and my friend would like to buy me out. Assuming we can agree a price what are the next steps? Is there likely to be any concerns with ModaMortgages with him being solely liable for the total mortgage rather than only part of it?
• What if my application doesn't meet ModaMortgages lending criteria for a transfer of equity?
• Having been 5 years separated I have made the decision to relinquish up my interest in our property to my husband who is refinancing with ModaMortgages. Could this transfer of equity be done in four weeks?
• When it comes to transfer of equity conveyancing involving refinance with ModaMortgages should I be paying value added tax on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
• I am under the impression we would need at least AP1 and TR1. Is this true?
• My ex are planning to get a conveyancing solicitor in place for a refinance with ModaMortgages. Transfer of Equity conveyancing is also requiredI have used the different comparison based websites and the results are from all over England and Wales. How necessary is it to appoint a conveyancing solicitor local to us?
• I co-own a apartment in Wakefield , with a ModaMortgages loan with my former husband. Him and his fiance are going to acquire my share. We had approval from ModaMortgages to substitute my name with hers. The transfer of equity has to be completed by a conveyancer for ModaMortgages (apparently). In order to save fees can I deal with the Land Registry formalities?

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

Important warnings to consider in in addition to the above ModaMortgages 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 ModaMortgages conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed 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 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 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 valuation 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 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 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.