Questions and answers: Mortgage Agency Services transfer of equity
- I am filling out a Mortgage Agency Services transfer of equity application and have arrived at the questions regarding debts etc. There are some debts that I have been discharging for a number of years, I understand that they have long since disappeared from my credit rating. Am I obliged to set these out?
- I am considering refinancing my house in Rye
does my lawyer have to be on the Mortgage Agency Services Solicitor panel. The conveyancing also involves a transfer of equity.
- My Mortgage Agency Services home loan is in joint names with ex, he has agreed to be removed and let me have the property. Mortgage Agency Services have consented to the transfer of equity to me solely. Will Mortgage Agency Services contact my boss to check my salary?
- Me and my former wife and I are are seeking to find a dependable conveyancing solicitor to help me sell in a transfer of equity and remortgage with Mortgage Agency Services. I I am concerned about appointing the wrong one but with many conveyancing practices who do transfer of equity conveyancing out there...who's the best?
- What do I do if I am unhappy with the lawyer who carried out my transfer of equity conveyancing?
- I am hoping to refinance my flat in Wakefield
switching from Yorkshire Building Society to Mortgage Agency Services. The apartment is jointly owned but I would like it to be in my sole name as and when I remortgage. My former partner is OK with this and is willing to sign a form but neither of us want to get a second lawyer involved.
- I got my Decree Absolute in 2012. Foolishly I never got around to transfer ownership from both our names to just in my name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Mortgage Agency Services is happy to transfer the property and loan in my name (affordability checks done). Does she need a lawyer?
Questions that your conveyancer could ask in relation to your Mortgage Agency Services Transfer of Equity
Where you are going to hold 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 confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Please provide a copy of your National Insurance Number?
Can you give the name(s) and addresse(s) of those who jointly own the premises with you?
Please let us know of you wish us to draw up a Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Please confirm where you are making any payment for the Transfer of Equity and to whom and notify us the amount?
General Advice to read in conjunction with 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
If your property is 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 the lease. This could potentially result in the freeholder taking enforcement action against you.
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 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 varies based on the market value of the property at finalisation of the transfer of equity conveyancing.
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.
Content 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.