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Mortgage Agency Services

Recently asked questions relating to Mortgage Agency Services transfer of equity

  • I am are looking to find a responsive conveyancing lawyer to assist in a transfer of equity and refinance with Mortgage Agency Services. I I am concerned about appointing the wrong one but with so many conveyancing organisations who do transfer of equity conveyancing out there...who do I opt for?
  • Do I need legal advice when doing a transfer of equity where the mortgage is to remain with Mortgage Agency Services?
  • What should I be budgeting for when it comes to what solicitors fees are for a transfer of equity? I'm in the process of remortgaging - moving over to Mortgage Agency Services - and have been quoted £350 including VAT by Mortgage Agency Services's appointed lawyer, Have I been over quoted?
  • I got my Decree Absolute in 2010. For some reason I never got around to change the ownership from both our names to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Mortgage Agency Services is happy to transfer the full equity in my name (financial checks done). Does she need a solicitor?
  • I am planning on removing a name from a joint mortgage and the Mortgage Agency Services require me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Romsey conveyancer to deal with the transfer of equity? They need to be on the Mortgage Agency Services conveyancing panel.
  • I currently have a joint Mortgage Agency Services mortgage with my step-brother and am investigating the possibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, to enable me to purchase somewhere with my fiance. The outstanding mortgage is in the region 200k, and the property value is about 450k. Is this a transfer of equity? Is land tax due?
  • I am filling out a Mortgage Agency Services transfer of equity application and have arrived at the part concerning debts etc. I do some debts that I have been discharging for a number of years, in fact they no longer remain my credit records. Must I set these out?

Sample of information requested in a lawyer questionnaire concerning a Mortgage Agency Services Transfer of Equity

Would you like us to draft you Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?

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 give the name(s) and addresse(s) of those who jointly own the property with you?

Please confirm where you are providing any payment for the Transfer of Equity and to whom and disclose any such sums?

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

Is it the case that one of the registered proprietors passed away? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.

Caveats to be read in supporting the above Mortgage Agency Services transfer of equity Advice :

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

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from 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.

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 market value of the property at finalisation 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 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 lawyer 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 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 Mortgage Agency Services transfer of equity