Mortgage Express (No 2) transfer of equity: q and a’s
- I am are looking to find an affordable conveyancing lawyer to assist in a transfer of equity and remortgage with Mortgage Express (No 2). I I am concerned about being overcharged but with many conveyancing organisations who do transfer of equity conveyancing to choose from...who do I opt for?
- Is stamp duty payable when it comes to an transfer of equity with a mortgage with Mortgage Express (No 2)?
- I already have a mortgage with Mortgage Express (No 2) and am keeping my current mortgaging but applying to have have the equity transferred to my name only so my ex will come off the mortgage. How long can it take for the forms to be processed?
- My mother passed away early last year leaving a mortgage-free property to me and my brother equally. He has always lived in the premises, there was a provision in the will saying the premisescould not be sold for 2 years after her passing so he could remain there for a specified time frame. He now says he would like to remain in the house beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the conventional way to buy my half from me?
- I am am in need of a conveyancing solicitor to deal with my transfer of equity. Mortgage Express (No 2) have been approached for a refinancing. I thought of asking my mortgage broker. I am lead to believe he may get a referral fee for suggesting someone, but also of benefit will be that he knows the lawyer, has a working relationship with them. Any flaws you see in this way of thinking?
- My partner and I jointly own a house in Heathfield
. Home loan is with Mortgage Express (No 2). I wish to transfer full ownership to him with no payment of money but without using a conveyancer. Do you think this should be straightforward?
- My fiance and myself have equal shares in a investment property. I am a top rate tax payer. Ideally I would like to do a transfer of equity into her name with a view to mitigate tax on rental income. Assuming Mortgage Express (No 2) are content 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 am I giving up my CGT relief.
Examples of information requested in a conveyancer form relating to Mortgage Express (No 2) Transfer of Equity
Where you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Is the transfer of equity subject to a court order? If yes please supply a copy
Where you are intent on holding 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 provide the name(s) and addresse(s) of anyone to be extracted from the property title?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Who will be responsible for the costs of the Transfer of Equity?
Information to consider in supporting 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 properties
Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not complied with 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 pursuant to 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 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 is dependent on the valuation of the property at the time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Mortgage Express (No 2) your property may be repossessed.
Preparing the Transfer of Equity with a Mortgage Express (No 2) 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 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 lawyer 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 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.