Recently asked questions relating to Molo Finance Buy to Let transfer of equity

• My existing mortgage is with Molo Finance Buy to Let. Can I transfer equity to someone who is not yet eighteen years old?
• What if my application doesn't meet Molo Finance Buy to Let lending criteria for a transfer of equity?
• I am hoping to remortgage my apartment in Crabtree moving from HSBC to Molo Finance Buy to Let. The home is jointly owned but intend for it to be in my sole name once I switch. My husband is OK with this and is happy to sign a form but neither of us want to incur conveyancer fees.
• I already have a home loan with Molo Finance Buy to Let and am maintaining my existing mortgaging but applying to have it in my name alone so my former wife will be removed from the title. How long can it take for the forms to be processed?
• What is the process for having a person removed from the deeds to a property where the mortgage is with Molo Finance Buy to Let
• My friend and I got a joint mortgage with Molo Finance Buy to Let on a flat in 2013. I am now thinking of purchasing a flat on my own and my friend would like to buy me out. Once we have agreed a figure what happens next? Is there likely to be any issue with Molo Finance Buy to Let with him being on the hook for the total loan as opposed to only half of it?
• My mum died early last year leaving a loan-free house to me and my brother 50:50. He has always lived in the property, there was a condition in the will saying the premisescould not be sold for three years following her passing so he could continue to live there for a specified time frame. He now wants to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the usual way to purchase my half from me?

Questions that your conveyancer is likely to ask about your Molo Finance Buy to Let Transfer of Equity

General Advice to read in supporting the above Molo Finance Buy to Let transfer of equity Advice :

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 Molo Finance Buy to Let conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach of 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 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 market value of the property at finalisation of the transfer of equity transaction.

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 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. Lender Panel.com Ltd will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.