Frequently asked questions relating to Mortgage Agency Services transfer of equity
- I co-own a apartment in Ampthill , with a Mortgage Agency Services loan with my former partner. He and his new partner are going to acquire my share. We had consent from Mortgage Agency Services to replace my name with hers. The transfer of equity has to be done by a conveyancer for Mortgage Agency Services (apparently). In order to save fees can I deal with the Land Registry change?
- I got divorced four years ago. Foolishly I never dealt with the transfer ownership from both our names to my name alone. 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 my ex need a lawyer?
- I purchased a house with a friend in 2009 Since then, we have both got married. We are now seeking to do a transfer of equity so my name is removed the Mortgage Agency Services mortgage. There is a 30k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- I am selling my share of a apartment in Warwick to the other co-owners fiance, they are sticking with Mortgage Agency Services as the the existing mortgage company. We are debating as to who must cover the legal bill for the transfer of equity. Should this be shared or is one of us obliged to cover the costs of?
- Having been a number of years estranged I have decided to give up my share of the house to my husband who is re-mortgaging with Mortgage Agency Services. Could this transfer of equity be completed inside 28 days?
- My former wife are looking to get a lawyer in place for a refinance with Mortgage Agency Services. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over UK. How necessary is it to appoint a conveyancer local to us?
- My partner and I have equal shares in a BTL. I am a higher rate tax payer. Ideally I wish to do a transfer of equity to her sole name to mitigate tax on the letting income. Assuming Mortgage Agency Services are fine with this the legal fees are not high. What are the implications when we dispose of the property? Would my GGT relief be lost.
Information that may be required from your conveyancer may ask about your Mortgage Agency Services Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please inform us if you are making any payment for the Transfer of Equity and to whom and disclose the amount?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please give the name(s) and addresse(s) of anyone to be extracted from the property title?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Caveats to be read in supporting the above Mortgage Agency Services transfer of equity Advice :
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 premises
Should the tenure of your property be leasehold, 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 violation of your covenants under the lease. This could trigger 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 is dependent 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 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 conveyancing solicitor 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 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.