Common questions relating to Mortgage Agency Services transfer of equity

• Me and a friend got a joint mortgage with Mortgage Agency Services on a flat in 2013. I am now looking to get a property on my own and my friend would like to buy me out. Once we have agreed an amount where do we go? Is there likely to be any issue with Mortgage Agency Services with him being on the hook for the total mortgage as opposed to only half of it?
• I understand we would need at least AP1 and TR1. Is this true?
• As things stand I have a joint Mortgage Agency Services mortgage with my step-brother and am investigating the feasibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, so as to enable me to buy somewhere with my fiance. The remaining mortgage is approx 300k, and the property value is approx 600k. Is this a transfer of equity? Is land tax involved?
• What is the process for adding or removing names (transfer of equity) to or from my Mortgage Agency Services mortgage account?
• My Mortgage Agency Services home loan we jointly entered into with ex, he has agreed to come off the deeds 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 verify my salary?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Mortgage Agency Services?
• I am hoping to refinance my home in Timperley changing from RBS to Mortgage Agency Services. The home is currently in joint names but propose for it to be in my name only as and when I remortgage. My wife is OK with this and is willing to sign a form but neither of us want to get a second lawyer involved.

Examples of information requested in a conveyancing solicitor questionnaire relating to Mortgage Agency Services Transfer of Equity

Important warnings to consider in supplemental 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 properties

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 landlord. If such conditions are not complied with you may be in violation of your covenants under the lease. This could trigger 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 time of completion of the transfer of equity conveyancing.

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 conveyancing solicitor 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.