Common questions relating to Mortgage Agency Services transfer of equity
- Me and my partner co-own a flat in Miles Platting
. Mortgage is with Mortgage Agency Services. I would like to transfer full ownership to him with no payment of money but without using a lawyer. Do you think this should be easy to so?
- I am disposing of my share of a property in Hendon to my co-owners husband, they are reapplying to Mortgage Agency Services. We are haggling as to who should cover the costs of the transfer of equity. Should this be split or is one party liable for the legal bill?
- Having been four years estranged I have opted to transfer my interest in the house to my husband who is refinancing with Mortgage Agency Services. Can a transfer of equity be completed inside four weeks?
- My divorce has gone through as is the consent order. Now I have to sort out the transfer of equity on title deeds and the Mortgage Agency Services home loan. I have contacted Mortgage Agency Services for the transfer of equity forms. What happens next?
- Online reading suggests that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I need to be transferring equity and simultaneously remortgaging with Mortgage Agency Services
- I am hoping to remortgage my flat in Blaenavon
moving from Accord to Mortgage Agency Services. The flat is currently in joint names but propose for it to be in my sole name when I switch. My former partner is OK with this and is happy to transfer equity but neither of us want to incur conveyancer fees.
- My wife and I have 50:50 shares in a BTL. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity to her sole name to mitigate tax on the letting income. Assuming Mortgage Agency Services are fine with this the legal fees are not high. However what happens when we dispose of the property? As I would no longer be on the deeds would I lose my CGT relief.
Sample of information requested in a lawyer questionnaire relating to Mortgage Agency Services Transfer of Equity
Please give the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Have you approached Mortgage Agency Services to seek consent to the Transfer of Equity
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
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” Form.
Is it the case that one of the registered owners died? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Caveats to be read in further to 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 premises
If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such restrictions are not strictly observed you may be in violation 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 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 conveyancing solicitor 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 market value of the property at the conclusion 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 conveyancer 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.