Questions and answers: Molo Finance Buy to Let transfer of equity
- I acquired a property with my brother in 2010 Since then, we have both got married. We are now seeking to do a transfer of equity so my name comes off the Molo Finance Buy to Let mortgage. There is a meaningful difference between the value the bank hold and what the property would sell for currently. Can you offer any advice?
- I already have a home loan with Molo Finance Buy to Let and am maintaining my current mortgaging but seeking to have it in my sole name so my former wife won't be on it any longer. How long does the whole transfer of equity process take?
- My decree absolute is through as is the consent order. Now I need to address the transfer of equity for the property and the Molo Finance Buy to Let home loan. I have asked Molo Finance Buy to Let for the transfer of equity application. What do I do now?
- My partner and myself jointly own a investment property. I am a top rate tax payer. Ideally I would like to complete a transfer of equity to her sole name with a view to mitigate tax on the letting income. Assuming Molo Finance Buy to Let are happy with this the legal fees are not prohibitive. What are the implications when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.
- I am considering mortgaging my flat in Ampthill does my lawyer need to be on the Molo Finance Buy to Let Conveyancing panel. The conveyancing also involves a transfer of equity.
- Will I incur any charges for a Transfer of Equity where the current home loan is with Molo Finance Buy to Let?
- I own a property in Heathfield
, with a Molo Finance Buy to Let loan with my former partner. He and his new partner are going to buy me out. We had the go ahead from Molo Finance Buy to Let to remove my name with hers. The transfer of equity needs to be done by a conveyancing solicitor for Molo Finance Buy to Let (apparently). Can we do the Land Registry change?
Sample of questions in a conveyancer questionnaire concerning a Molo Finance Buy to Let Transfer of Equity
Please clarify if you are providing any payment for the Transfer of Equity and to whom and specify any such sums?
Who will be responsible for the costs of the Transfer of Equity?
Is it the case that one of the registered owners passed away? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
If you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please let us know of you wish us to draft you Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
General Advice to read in supporting the above Molo Finance Buy to Let 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 Molo Finance Buy to Let 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 require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.
If the transfer of equity is made as a result of 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 Molo Finance Buy to Let 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 Molo Finance Buy to Let 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.
Your property may be repossessed if you do not keep up repayments on your mortgage with Molo Finance Buy to Let.
Preparing the Transfer of Equity with a Molo Finance Buy to Let 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 Molo Finance Buy to Let 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. 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.