Common questions relating to Mortgage Agency Services transfer of equity
- I already have a home loan with Mortgage Agency Services and am maintaining my existing mortgaging but seeking to have have the equity transferred to my name alone so my former wife will come off the deeds. How long can it take for the forms to be processed?
- Me and my partner jointly own a flat in Friern Barnet
. Home loan is with Mortgage Agency Services. I would like to transfer full ownership to him with no exchange of money but without using a conveyancer. Do you think this should be easy to so?
- I am looking for a lawyer to deal with my transfer of equity. Mortgage Agency Services have been approached for a remortgage. I thought of asking my mortgage broker. I understand he will likely get a referral fee for recommending someone, but also of benefit will be that he knows the lawyer, has dealt with them before. Any flaws you see in this way of thinking?
- I co-own a flat in Friern Barnet
, with a Mortgage Agency Services mortgage with my former partner. He and his new partner are going to buy me out. We had approval from Mortgage Agency Services to substitute my name with hers. The transfer of equity has to be done by a lawyer for Mortgage Agency Services (apparently). In order to save fees can I do the Land Registry formalities?
- In 2012 I purchased a property without my wife's name on the deeds. My conveyancer advised it is because she is not in the loan offer with Mortgage Agency Services. Is it possible for me to put her name on the title?
- Is it sensible to cancel my mortgage payments with Mortgage Agency Services as soon as a date for my remortgage and transfer of equity has been set?
- Is it possible to transfer the equity held in my property with my Mortgage Agency Services mortgage?
Information that may be required from your conveyancing solicitor could ask about your Mortgage Agency Services Transfer of Equity
Please provide the details of anyone to be added to the property title?
Is the transfer of equity subject to a court order? If yes please supply a copy
Will there be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Please provide the details of anyone to be extracted from the title deeds?
Has consent been obtained from Mortgage Agency Services to the proposed transfer of equity?
Who will be responsible for the costs of the Transfer of Equity?
General Advice to read in supplemental the above Mortgage Agency Services transfer of equity information :
Tax and Legal
There are numerous potential 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 have a requirement for notices to be served and 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 potentially result in 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 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 lawyer 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 the time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Mortgage Agency Services your property may be repossessed.
Preparing the Transfer of Equity with a Mortgage Agency Services 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 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 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.