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Mortgage Express (No 2)

Top seven questions relating to Mortgage Express (No 2) transfer of equity

  • My current mortgage is with Mortgage Express (No 2). Can I transfer equity to someone less than 18 years old?
  • Am I best advised cancel my mortgage payments with Mortgage Express (No 2) as soon as a date for my remortgage and transfer of equity has been set?
  • My Mortgage Express (No 2) home loan is in joint names with ex, he is agreeable to come off the mortgage and let me have the property. Mortgage Express (No 2) will permit the transfer of equity to my individual name. Do Mortgage Express (No 2) get in touch with my boss to check my salary?
  • Mortgage Express (No 2) have today agreed I can take over the home loan on the house. I previously applied for a transfer of equity but presumably there is a transfer of ownership of the house as well?
  • What can I do where I am not happy with the lawyer who handled my transfer of equity conveyancing?
  • I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
  • Me and my partner co-own a property in Blaenavon . Mortgage is with Mortgage Express (No 2). I want to transfer full ownership to him with no passing of money but without using a conveyancer. Do you think this should be straightforward?

Sample of questions in a conveyancer form relating to Mortgage Express (No 2) Transfer of Equity

Who will be responsible for the costs of the Transfer of Equity?

Please provide the details of anyone to be added to the property title?

Please give the details of anyone to be removed from the property title?

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?

Where 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” Form.

Please confirm where you are making any payment for the Transfer of Equity and to whom and give details of the amount?

Important warnings to consider in further to the above Mortgage Express (No 2) transfer of equity information :

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 properties

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such restrictions are not strictly observed you may be in breach 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 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 conveyancer 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 varies based on the valuation of the property at finalisation 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 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 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 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.


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