Mortgage Agency Services transfer of equity: q and a’s
- Law month I split up with my wife of 18 years. I'm now living with my parents again and she wishes to remain in the apartment and pay me off. What portion 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 sure that I'm getting what I am entitled to
- I am in the process of removing a name from a joint mortgage and the Mortgage Agency Services require me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Dunnington
conveyancer to deal with the transfer of equity? They need to be on the Mortgage Agency Services conveyancing panel.
- What can I do where I am unhappy with the conveyancer who handled our transfer of equity conveyancing?
- My brother and I got a joint mortgage with Mortgage Agency Services on a flat about a year ago. I am now looking to get a property by myself and my friend would like to buy me out. Once we have agreed a price what are the next steps? Would there be any potential issue with Mortgage Agency Services with him being responsible for the total mortgage rather than only half of it?
- I am filling out a Mortgage Agency Services transfer of equity request and have come to the questions that asks about defaults etc. There are some debts that I have been clearing for a number of years, in fact they have long since disappeared from my credit records. Do I need to declare these?
- I acquired a house with my cousin six years ago Since then, we have both got married. We are now seeking to do a transfer of equity so my name comes off the Mortgage Agency Services mortgage. There is a meaningful difference between the value the Mortgage Agency Services say and what the property would sell for currently. Can you offer any advice?
- I am am in need of a lawyer to deal with my transfer of equity. Mortgage Agency Services have been approached for a remortgage. I considered asking my financial adviser. I am lead to believe he may get a kickback for suggesting someone, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Is my logic correct?
Sample of questions in a lawyer questionnaire concerning a Mortgage Agency Services Transfer of Equity
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the SDLT 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
Is the transfer of equity subject to a court order? If yes please supply a copy
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.
Has consent been obtained from Mortgage Agency Services to the proposed transfer of equity?
Please give the details of anyone to be added to the property title?
Caveats to be read in in addition to the above Mortgage Agency Services transfer of equity Info :
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 titles
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 terms are not adhered to you may be in violation of your covenants under 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 conveyancing solicitor 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.
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 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.