Top seven questions relating to Mortgage Express (No 2) transfer of equity
- I already have a mortgage with Mortgage Express (No 2) and am keeping my existing mortgaging but wish to have it in my name only so my ex won't be on it any longer. How long do Mortgage Express (No 2) take to process the application?
- Mortgage Express (No 2) yesterday agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership of the house as well?
- At what point do I pay stamp duty due for the transfer of equity in my house in my name alone which is taking place simultaneously with a remortgage via Mortgage Express (No 2)?
- I acquired a flat with a friend six years ago Since then, we have both got married. We are now intending to do a transfer of equity so my name is removed the Mortgage Express (No 2) mortgage. There is a meaningful difference between the value the Mortgage Express (No 2) say and what the property would sell for currently. Can you offer any advice?
- What should I be budgeting for when it comes to what legal costs are for a transfer of equity? I need to transfer equity and refinance - moving over to Mortgage Express (No 2) - and have been quoted Three Hundred pounds including VAT by Mortgage Express (No 2)'s appointed conveyancing solicitor, Have I been over quoted?
- My partner and I co-own a flat in Miles Platting
. Mortgage is with Mortgage Express (No 2). I would like to transfer full ownership to him with no exchange of money but without using a lawyer. Is this likely to be easy to so?
- I am thinking of remortgaging my property in Wakefield
does my lawyer need to be on the Mortgage Express (No 2) Solicitor panel. The conveyancing also involves a transfer of equity.
Examples of questions in a conveyancing solicitor questionnaire relating to Mortgage Express (No 2) Transfer of Equity
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 extracted from the property title?
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
Has one of the registered owners passed away? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
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?
Can you provide the name(s) and addresse(s) of those who jointly own the property with you?
General Advice to read 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 premises
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. If such restrictions are not strictly observed you may be in violation of 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 conveyancing solicitor 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 time of completion 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 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 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 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.