Common questions relating to Molo Finance Buy to Let transfer of equity
- I am in the process of removing a name from a joint mortgage and the Molo Finance Buy to Let need me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Friern Barnet
conveyancer to deal with the transfer of equity? They need to be on the Molo Finance Buy to Let conveyancing panel.
- My fiance and I equally own a investment property. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity into her name in order reduce our tax on the letting income. If Molo Finance Buy to Let are fine with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
- What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Molo Finance Buy to Let?
- My mum passed away half a year ago leaving a unencumbered property to me and my half brother equally. Having continues to reside at the house, there was a clause in the will saying the propertycould not be sold for 2 years following her death so he could remain there for a prescribed period. He now says he would like to remain in the house beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the traditional way to acquire my half from me?
- Me and a friend got a joint mortgage with Molo Finance Buy to Let on a house in 2013. I am now thinking of buying a property on my own and my friend would like to buy me out. Once we have agreed a figure where do we go? Would there be any potential issue with Molo Finance Buy to Let with him being on the hook for the total loan as opposed to only part of it?
- I understand we would need at least AP1 and Transfer Deed. Is this true?
- I am hoping to remortgage my maisonette in Timperley
changing from RBS to Molo Finance Buy to Let. The flat is currently in joint names but I would like it to be in my sole name when I remortgage. My wife is OK with this and is willing to sign a form but neither of us want to incur conveyancer fees.
Information that may be required from your conveyancer could ask about your Molo Finance Buy to Let Transfer of Equity
Please provide a copy of your National Insurance Number?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please let us know of you wish us to draft you Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
If you are adding someone 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” Form.
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Have you approached Molo Finance Buy to Let to seek consent to the Transfer of Equity
Information to consider in supplemental 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, the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in breach 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 is dependent on the market value of the property at the conclusion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Molo Finance Buy to Let your property may be repossessed.
Preparing the Transfer of Equity with a Molo Finance Buy to Let 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 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 lawyer 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.