Common questions relating to Mortgage Express (No 2) transfer of equity
- My decree absolute has gone through as is the consent order. Now I must address the transfer of equity at the land registry and the Mortgage Express (No 2) home loan. I have called Mortgage Express (No 2) for the transfer of equity forms. What happens next?
- Is it possible to apply to borrow more money from Mortgage Express (No 2) as part of a Transfer of Equity?
- I am in the process of removing a name from a joint mortgage and the Mortgage Express (No 2) require me to use a lawyer to carry out the paperwork. Can you recommend a reasonably priced Friern Barnet
conveyancing solicitor to deal with the transfer of equity? They need to be on the Mortgage Express (No 2) conveyancing panel.
- Been looking at consumer forums 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 am transferring equity and simultaneously switching mortgage with Mortgage Express (No 2)
- My friend and I got a joint mortgage with Mortgage Express (No 2) on a property about a year ago. I am now thinking of buying a house by myself 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 concerns with Mortgage Express (No 2) with him being solely liable for the total mortgage as opposed to only part of it?
- I am trying to find a lawyer to deal with my transfer of equity. Mortgage Express (No 2) are dealing with the remortgage. I considered asking my mortgage broker. I understand he will likely get a referral fee for suggesting someone, but also of benefit will be that he knows the lawyer, has dealt with them before. Any flaws you see in this way of thinking?
- What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my Mortgage Express (No 2) mortgage account?
Sample of information requested in a conveyancer form concerning a Mortgage Express (No 2) Transfer of Equity
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Who will be responsible for the costs of the Transfer of Equity?
If 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” Form.
Please give the details of anyone to be added to the title deeds?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Information to consider in further to the above Mortgage Express (No 2) transfer of equity Info :
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 Express (No 2) conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. 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.
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 time of completion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Mortgage Express (No 2).
Preparing the Transfer of Equity with a Mortgage Express (No 2) Mortgage
When it comes to preparing the the Land Registry documents your conveyancing solicitor 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 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.