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Mortgage Agency Services

Recently asked questions relating to Mortgage Agency Services transfer of equity

  • Will I have to pay any fees for a Transfer of Equity where the existing home loan is with Mortgage Agency Services?
  • My existing home loan is with Mortgage Agency Services. Can I transfer equity to someone less than 18 years old?
  • I got divorced two years ago. For some reason I never dealt with the change the ownership from both our names to my sole name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Mortgage Agency Services is content to transfer the full equity in my name (affordability checks done). Does my ex need any legal representation?
  • Law week I split up with my ex of 18 years. I'm now living with my mum and dad and she wishes to stay in the flat and pay me off. What portion do I get. Is it 50% of the equity after paying off the mortgage with Mortgage Agency Services? I assume proper valuations are required but I really need ensure that I'm getting what I am entitled to
  • I am trying to find a lawyer to undertake my transfer of equity. Mortgage Agency Services are dealing with the remortgage. I thought of asking my mortgage broker. I am lead to believe he may receive a referral fee for suggesting someone, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic correct?
  • My former husband are planning to get a lawyer in place for a new mortgage with Mortgage Agency Services. Transfer of Equity conveyancing is also requiredI have used the different rating based websites and the results are from all over UK. Is it important to appoint a conveyancer local to us?
  • Is it possible to apply to request a further advance from Mortgage Agency Services as part of a Transfer of Equity?

Questions that your lawyer is likely to ask regarding your Mortgage Agency Services Transfer of Equity

If you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Please let us know if you are providing any payment for the Transfer of Equity and to whom and disclose the amount?

Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?

If 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 provide the name(s) and addresse(s) of anyone to be extracted from the property title?

Is the transfer of equity subject to a court order? If yes please supply a copy

Caveats to be read in further to the above Mortgage Agency Services transfer of equity information :

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 properties

If your property is leasehold, the lease may require 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.

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 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 is dependent on the valuation of the property at the conclusion 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 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