Frequently asked questions relating to Mortgage Express (No 2) transfer of equity

• Can I apply to request more money from Mortgage Express (No 2) as part of a Transfer of Equity?
• I jointly own a property in Miles Platting , with a Mortgage Express (No 2) mortgage with my former husband. He and his fiance are going to acquire my share. We had approval from Mortgage Express (No 2) to replace my name with hers. The transfer of equity has to be done by a lawyer for Mortgage Express (No 2) (apparently). Is it possible for us to do the Land Registry formalities?
• I understand we would need at least AP1 and TR1. Is this true?
• What if my application doesn't meet Mortgage Express (No 2) lending criteria for a transfer of equity?
• My Mortgage Express (No 2) home loan is in joint names with ex, he is agreeable to come off the mortgage and put the house in my name alone. Mortgage Express (No 2) have consented to the transfer of equity to me solely. Will Mortgage Express (No 2) get in touch with my boss to check my salary?
• In 2012 I bought a flat without my partner's name on the deeds. My conveyancer advised it is because she was not in the mortgage with Mortgage Express (No 2). Is it possible for me to add her name on the documents at HMLR?
• Am I best advised cancel the direct debit for my mortgage with Mortgage Express (No 2) as soon as a date for my remortgage and transfer of equity has been agreed?

Information that may be required from your conveyancing solicitor could ask regarding your Mortgage Express (No 2) Transfer of Equity

Caveats to be read in in addition to the above Mortgage Express (No 2) transfer of equity Questions and Answers :

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 premises

If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such conditions are not strictly observed 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 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 the conclusion of the transfer of equity transaction.

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.

Content 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.