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Mortgage Express (No 2)

Mortgage Express (No 2) transfer of equity: q and a’s

  • My partner and myself have 50:50 shares in a investment property. I am a higher rate tax payer. Ideally I wish to do a transfer of equity into her name with a view to reduce our tax on rental income. Assuming Mortgage Express (No 2) are happy with this the legal fees are not prohibitive. What are the implications when we sell? As I would no longer be on the deeds would I lose my CGT relief.
  • I plan to refinance my flat in Blaenavon moving from RBS to Mortgage Express (No 2). The home is jointly owned but propose for it to be in my sole name as and when I transfer. My former partner is OK with this and is happy to sign a form but neither of us want to get a second conveyancer involved.
  • Can I apply to request more money from Mortgage Express (No 2) as part of a Transfer of Equity?
  • I purchased a house with my cousin in 2010 Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Mortgage Express (No 2) mortgage. There is a significant difference between the value the bank hold and what the property would sell for currently. Can you offer any advice?
  • My father died last May leaving a mortgage-free bungalow to me and my half brother equally. Having continues to reside at the property, there was a condition in her will specifying that the premisescould not be sold for 24 months following her death so he could remain there for a prescribed period. He now says he would like to remain in the house beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the conventional way to buy my half from me?
  • I am under the impression we would need at least AP1 and TR1. Is this true?
  • Can I transfer the equity held in my property with my Mortgage Express (No 2) home loan?

Questions that your lawyer could ask about your Mortgage Express (No 2) Transfer of Equity

Can you provide the details of those who jointly own the property with you?

Has consent been obtained from Mortgage Express (No 2) to the proposed transfer of equity?

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?

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Please give the details of anyone to be added to the title deeds?

Has one of the registered owners passed away? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.

General Advice to read in supplemental 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 titles

If your property is leasehold, provisions in 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 conditions are not complied with you may be in violation of the lease. This could potentially result in 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 market value of the property at the conclusion 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 contained within 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.


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