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Molo Finance Buy to Let transfer of equity: q and a’s

  • I am looking for a lawyer to undertake my transfer of equity. Molo Finance Buy to Let are dealing with the remortgage. I thought of asking my mortgage broker. I understand he will likely receive a kickback for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Any flaws you see in this way of thinking?
  • What are the average legal costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Molo Finance Buy to Let - and have been quoted £350 plus VAT by Molo Finance Buy to Let's appointed conveyancing solicitor, Is this a reasonable price?
  • I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
  • Can I apply to borrow a further advance from Molo Finance Buy to Let as part of a Transfer of Equity?
  • Me and a friend got a joint mortgage with Molo Finance Buy to Let on a property a couple of years ago. I am now looking to get a house on my own and my friend would like to buy me out. On the basis that we can settle on a price where do we go? Would there be any potential problem with Molo Finance Buy to Let with him being responsible for the total loan rather than only half of it?
  • I am remortgaging my property in Littleborough does my lawyer have to be on the Molo Finance Buy to Let Solicitor panel. The conveyancing also involves a transfer of equity.
  • My wife and I have equal shares in a buy to let. I am a higher rate tax payer. Ideally I wish to do a transfer of equity to her sole name to mitigate tax on rental income. If Molo Finance Buy to Let are content with this the legal fees are not high. What are the implications when we sell? As I would no longer be on the title documents would I lose my CGT relief.

Questions that your conveyancing solicitor is likely to ask regarding your Molo Finance Buy to Let Transfer of Equity

Would you like us to prepare Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?

If you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Have you approached Molo Finance Buy to Let to obtain consent to the Transfer of Equity

Please provide the details of anyone to be added to the title deeds?

Please provide the name(s) and addresse(s) of those who jointly own the premises with you?

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Information to consider in supplemental the above Molo Finance Buy to Let transfer of equity information :

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 have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not strictly observed you may be in violation of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 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 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 conveyancer 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 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. 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.


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