Recently asked questions relating to Molo Finance Buy to Let transfer of equity
- Is it possible to apply to borrow more money from Molo Finance Buy to Let as part of a Transfer of Equity?
- I currently have a joint Molo Finance Buy to Let mortgage with my step-brother and am looking into the possibility of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to buy somewhere with my partner. The outstanding mortgage is approx 200k, and the property value is about 600k. Is this a transfer of equity? Is land tax involved?
- My Molo Finance Buy to Let home loan we jointly entered into with ex, who has agreed to come off the mortgage and let me have the property. Molo Finance Buy to Let will permit the transfer of equity to my individual name. Will Molo Finance Buy to Let write my employer to confirm my salary?
- I jointly own a flat in Blaenavon
, with a Molo Finance Buy to Let loan with my ex husband. He and his fiance are going to buy me out. We had approval from Molo Finance Buy to Let to replace my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Molo Finance Buy to Let (apparently). Can we deal with the Land Registry formalities?
- I am refinancing my property in Heathfield
does my lawyer have to be on the Molo Finance Buy to Let Solicitor panel. The conveyancing also involves a transfer of equity.
- What are the average conveyancing fees are for a transfer of equity? I'm in the process of remortgaging - moving over to Molo Finance Buy to Let - and have been quoted £350 excluding VAT by Molo Finance Buy to Let's appointed conveyancing solicitor, Is this a reasonable price?
- Online reading suggests that solicitors are more expensive than conveyancers when it comes to transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I need to be transferring equity and at the same time remortgaging with Molo Finance Buy to Let
Information that may be required from your conveyancing solicitor could ask regarding your Molo Finance Buy to Let Transfer of Equity
Please provide a copy of your National Insurance Number?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please confirm where you are providing any payment for the Transfer of Equity and to whom and give details of the amount?
Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?
Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
Has consent been obtained from Molo Finance Buy to Let to the proposed transfer of equity?
Information to consider in supplemental the above Molo Finance Buy to Let transfer of equity Advice :
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
If your property is leasehold, the lease may require that you obtain the consent of the landlord. If such restrictions are not strictly observed you may be in breach of the lease. This could trigger 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 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 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 market value of the property at the time of completion 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.
Content 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.