Recently asked questions relating to Mortgage Express (No 2) transfer of equity
- Two years ago I bought a house without my fiance’s name on the title. My lawyer claimed it is because she is not in the mortgage with Mortgage Express (No 2). I'm wondering is there any way that I can put her name on the title?
- What do I need to do when it comes adding or removing names (transfer of equity) to or from my Mortgage Express (No 2) mortgage account?
- As things stand I have a joint Mortgage Express (No 2) mortgage with my cousin and am looking into the option of him assuming responsibility for the outstanding mortgage and extracting myself from it, to enable me to purchase somewhere with my fiance. The outstanding mortgage is in the region 175k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax due?
- Having been a number of years apart I have made the decision to transfer my interest in the house to my husband who is re-mortgaging with Mortgage Express (No 2). Could this transfer of equity be done inside 28 days?
- Me and a friend got a joint mortgage with Mortgage Express (No 2) on a property in 2013. I am now looking to get a apartment on my own and my friend would like to buy me out. Once we have agreed a figure what are the next steps? Is there likely to be any problem with Mortgage Express (No 2) with him being responsible for the total loan rather than only part of it?
- Mortgage Express (No 2) have just agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but is this a transfer of ownership at HMLR as well?
- I am considering mortgaging my house in Heathfield
does my lawyer have to be on the Mortgage Express (No 2) Solicitor panel. The conveyancing also involves a transfer of equity.
Information that may be required from your lawyer is likely to ask regarding your Mortgage Express (No 2) Transfer of Equity
Please let us know if you are providing any payment for the Transfer of Equity and to whom and give details of any such sums?
Please give the details of those who jointly own the property with you?
Please let us know of you wish us to prepare Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please give the name(s) and addresse(s) of anyone to be added to the property title?
If you are adding a person 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.
Information to consider in in addition to the above Mortgage Express (No 2) transfer of equity Info :
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, the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in breach of the lease. This could trigger 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 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 is dependent on the valuation of the property at finalisation of the transfer of equity conveyancing.
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 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 lawyer 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.