Molo Finance Buy to Let transfer of equity: q and a’s
- I intend to refinance my apartment in Timperley
changing from Santander to Molo Finance Buy to Let. The maisonette is currently in joint names but wish for it to be in my sole name as and when I remortgage. My former partner is OK with this and is happy to transfer equity but neither of us want to incur conveyancing solicitor fees.
- I am completing a Molo Finance Buy to Let transfer of equity application and have come to the questions regarding debts etc. I do some debts that I have been paying off for a number of years, in fact they have long since disappeared from my credit score. Am I obliged to reveal these?
- I already have a mortgage with Molo Finance Buy to Let and am maintaining my current mortgaging but wish to have have the equity transferred to my name alone so my ex won't be on it any longer. How long do Molo Finance Buy to Let take to deal with the application?
- Have recently separated from my ex of 18 years. I'm now living with my parents again and she wants to remain in the flat and pay me off. What percentage do I get. Is it half of the equity after paying off the mortgage with Molo Finance Buy to Let? I assume proper valuations are necessary but I would like to be sure that I'm getting the best deal
- My mortgage broker has recommended their conveyancer for our Transfer of Equity plus remortgage with Molo Finance Buy to Let - Is it not simpler easier to just use them?
- My current home loan is with Molo Finance Buy to Let. Can I transfer equity to someone under eighteen years old?
- My father passed away early last year leaving a unencumbered house to me and my step brother equally. Having continues to reside at the property, there was a provision in her will specifying that the propertycould not be sold for 2 years after her passing so he could continue to live there for a specified time frame. He now wishes to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the usual way to purchase my equity?
Questions that your lawyer is likely to ask regarding your Molo Finance Buy to Let Transfer of Equity
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Can you provide the details of anyone who jointly owns the property with you?
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)?
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Information to consider in in addition to the above Molo Finance Buy to Let transfer of equity Questions and Answers :
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 titles
If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such terms are not adhered to you may be in violation of the lease. This could trigger the freeholder taking enforcement action against you.
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 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 valuation of the property at finalisation 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 conveyancing solicitor 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 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.