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Top seven questions relating to Mortgage Agency Services transfer of equity

  • I am thinking of mortgaging my home in Heathfield does my lawyer need to be on the Mortgage Agency Services Solicitor panel. The conveyancing also involves a transfer of equity.
  • My Mortgage Agency Services mortgage we jointly entered into with ex, who has agreed to be removed and put the house in my name alone. Mortgage Agency Services have consented to the transfer of equity to my individual name. Do Mortgage Agency Services call my company to check my salary?
  • I am filling out a Mortgage Agency Services transfer of equity form and have arrived at the section that asks about debts etc. I do some debts that I have been clearing for a number of years, I understand that they no longer remain my credit score. Do I need to set these out?
  • I am under the impression we would need at least AP1 and TR1. Is this true?
  • In 2012 I bought a property without my fiance’s name on the title documents. My conveyancer claimed it is because she is not in the mortgage with Mortgage Agency Services. Is it possible for me to add her name on the deeds?
  • Law month I separated from my ex of twenty years. I'm now living with my parents again and she wishes to remain in the flat and buy me out. What percentage do I get. Is it half of the equity after discharging the mortgage with Mortgage Agency Services? I assume proper valuations are necessary but I really need to be confident that I'm getting the best deal
  • Mortgage Agency Services have today agreed I can take over the home loan on the house. I had applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds on top?

Information that may be required from your conveyancer may ask about your Mortgage Agency Services Transfer of Equity

Please let us know of you wish us to draw up a Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?

Please provide the details of anyone to be added to the property title?

Has consent been obtained from Mortgage Agency Services to the proposed transfer of equity?

Where you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Please clarify where you are providing any payment for the Transfer of Equity and to whom and notify us the amount?

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

General Advice to read in further 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 premises

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 conditions are not complied with you may be in violation 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 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 varies based on the market value of the property at the time of completion 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 conveyancer 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.


Frequently asked questions relating to Mortgage Agency Services transfer of equity