Recently asked questions relating to Mortgage Agency Services transfer of equity
- I purchased a flat with my cousin in 2008 Since then, we have both got married. We are now looking to do a transfer of equity so my name comes off the Mortgage Agency Services mortgage. There is a significant difference between the value the mortgage company hold and what the property would sell for currently. Can you offer any advice?
- I jointly own a apartment in Crabtree
, with a Mortgage Agency Services mortgage with my ex husband. Him and his fiance are going to acquire my share. We had the go ahead from Mortgage Agency Services to remove my name with hers. The transfer of equity needs to be done by a lawyer for Mortgage Agency Services (supposedly). Can we deal with the Land Registry formalities?
- My Mortgage Agency Services mortgage we jointly entered into with ex, he is agreeable to come off the mortgage and let me have the property. Mortgage Agency Services will permit the transfer of equity to my individual name. Will Mortgage Agency Services get in touch with my boss to confirm my salary?
- My wife and I equally own a buy to let. I am a top rate tax payer. Preferably I wish to do a transfer of equity into her name to mitigate tax on the letting income. If Mortgage Agency Services are happy with this the legal fees are not prohibitive. What are the implications when we sell? As I would no longer be on the deeds am I giving up my CGT relief.
- When it comes to transfer of equity conveyancing involving a remortgage with Mortgage Agency Services should I be charged value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- After three years estranged I have made the decision to relinquish up my interest in the flat to my husband who is refinancing with Mortgage Agency Services. Could this transfer of equity be completed in one month?
- I intend to refinance my flat in Friern Barnet
changing from Chelsea BS to Mortgage Agency Services. The flat is jointly owned but intend for it to be in my name only once I transfer. My wife is OK with this and is happy to sign a form but neither of us want to incur lawyer fees.
Questions that your lawyer is likely to ask about your Mortgage Agency Services Transfer of Equity
Has one of the registered owners passed away? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.
Who will be responsible for the costs of the Transfer of Equity?
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 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
Have you approached Mortgage Agency Services to obtain consent to the Transfer of Equity
Caveats to be read in further to the above Mortgage Agency Services transfer of equity Info :
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 premises
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such terms are not adhered to you may be in breach 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 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 is dependent on the valuation of the property at the conclusion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Mortgage Agency Services.
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 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.