Questions and answers: Mortgage Agency Services transfer of equity

• My divorce has gone through as is the consent order. Now I must sort out the transfer of equity on title deeds and the Mortgage Agency Services home loan. I have asked Mortgage Agency Services for the transfer of equity application. What are my next steps?
• Can I apply to borrow more money from Mortgage Agency Services as part of a Transfer of Equity?
• Can you tell me how to have a person removed from the title documents to a house where the mortgage is with Mortgage Agency Services
• I jointly own a property in Romsey , with a Mortgage Agency Services mortgage with my former partner. He and his new partner are going to acquire my share. We had approval from Mortgage Agency Services to remove my name with hers. The transfer of equity has to be completed by a lawyer for Mortgage Agency Services (apparently). In order to save fees can I do the Land Registry formalities?
• Is it possible to transfer the equity held in my property with my Mortgage Agency Services mortgage?
• Have recently separated from my wife of twenty years. I'm now back with my parents again and she wants to remain in the apartment and pay me off. What percentage do I get. Is it half of the equity after discharging the mortgage with Mortgage Agency Services? I assume proper valuations are required but I really need to be confident that I'm getting I am not being taken advantage of
• My former husband are planning to get a conveyancing solicitor lined up for a new mortgage with Mortgage Agency Services. Transfer of Equity conveyancing is also requiredI have used the different comparison based websites and the results are from all over England and Wales. Is it important to appoint a conveyancing solicitor local to us?

Examples of information requested in a lawyer questionnaire relating to Mortgage Agency Services Transfer of Equity

Caveats to be read in supporting the above Mortgage Agency Services 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 Mortgage Agency Services conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such conditions are not complied with 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 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 Mortgage Agency Services 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 Mortgage Agency Services 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 valuation of the property at finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Mortgage Agency Services 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 Mortgage Agency Services 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 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.