Top seven questions relating to Mortgage Express (No 2) transfer of equity

• What legal advice do I need when doing a transfer of equity where the home loan is to remain with Mortgage Express (No 2)?
• I got divorced in 2011. For some reason I never got around to transfer ownership from the current 'joint' status to just in my name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Mortgage Express (No 2) is willing to transfer the full equity in my name (affordability checks done). Does she need a lawyer?
• I understand we would need at least AP1 and TR1. Is this true?
• My former husband are planning to get a lawyer lined up for a remortgage with Mortgage Express (No 2). Transfer of Equity conveyancing is also requiredI have used the different rating based websites and the results are from all over UK. Do we need to instruct a lawyer local to us?
• Me and a friend got a joint mortgage with Mortgage Express (No 2) on a flat a couple of years ago. I am now thinking of purchasing a property by myself and my friend would like to buy me out. Assuming we can agree an amount what are the next steps? Is there likely to be any concerns with Mortgage Express (No 2) with him being responsible for the total loan as opposed to only half of it?
• My decree absolute is through as is the consent order. Now I have to address the transfer of equity for the property and the Mortgage Express (No 2) home loan. I have called Mortgage Express (No 2) for the transfer of equity forms. What are my next steps?
• Can you tell me how to have someone removed off the deeds to a house if the mortgage is with Mortgage Express (No 2)

Sample of information requested in a conveyancer questionnaire concerning a Mortgage Express (No 2) Transfer of Equity

Important warnings to consider in further to the above Mortgage Express (No 2) transfer of equity information :

Tax and Legal

There are numerous potential tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Mortgage Express (No 2) 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 obtain the consent of the landlord. If such terms are not adhered to you may be in breach of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to 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 Express (No 2) 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 Express (No 2) 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 valuation of the property at the conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Mortgage Express (No 2) Mortgage

When it comes to preparing the the Land Registry documents your conveyancer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Mortgage Express (No 2) 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 contained within this webpage is for general information and only applies to England and Wales. It should not be regarded as 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.