Mortgage Express (No 2) transfer of equity example support desk enquires
- I got my Decree Absolute two years ago. For some reason I never got around to change the 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 content to transfer the property and loan in my name (affordability checks done). Does she need a conveyancer?
- What can I do where I am dissatisfied with the lawyer who conducted my transfer of equity conveyancing?
- Me and a friend got a joint mortgage with Mortgage Express (No 2) on a apartment a couple of years ago. I am now thinking of buying a apartment on my own and my friend would like to buy me out. Assuming we can agree a figure what happens next? Would there be any potential issue with Mortgage Express (No 2) with him being responsible for the total mortgage as opposed to only half of it?
- My mum passed away half a year ago leaving a unencumbered house to me and my step brother in equal shared. He has always lived in the house, there was a clause in the will saying the premisescould not be sold for three years after her death so he could reside there for a prescribed period. He now wishes to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the traditional way to purchase my equity?
- How much the typical legal charges are for a transfer of equity? I need to transfer equity and remortgage - moving over to Mortgage Express (No 2) - and have been quoted £250 plus VAT by Mortgage Express (No 2)'s appointed lawyer, Have I been over quoted?
- 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 already have a home loan with Mortgage Express (No 2) and am maintaining my current mortgaging but applying to have have the equity transferred to my name alone so my ex will no longer be on the deeds. How long can it take for the paperwork to be processed?
Questions that your conveyancing solicitor is likely to ask in relation to your Mortgage Express (No 2) Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please provide the details of anyone to be added to the property title?
If 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?
Can you provide the details of those who jointly own the premises with you?
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.
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Caveats to be read in further to the above Mortgage Express (No 2) transfer of equity Advice :
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, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not complied with you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
If the transfer of equity is made as a result of 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 market value of the property at the conclusion 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 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 conveyancing solicitor 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.