Common questions relating to Mortgage Express (No 2) transfer of equity
- My partner and myself equally own a buy to let. I am a top rate tax payer. Preferably I would like to do a transfer of equity to her sole name to mitigate tax on rental income. Assuming Mortgage Express (No 2) are happy with this the legal fees are inexpensive. What are the implications when we sell? Would my GGT relief be lost.
- Mortgage Express (No 2) have today agreed I can take over the home loan on the flat. I have applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds in addition?
- Online reading suggests 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 if I need to be transferring equity and at the same time remortgaging with Mortgage Express (No 2)
- My Mortgage Express (No 2) home loan we jointly entered into with ex, who is agreeable to be removed and let me have the property. Mortgage Express (No 2) will permit the transfer of equity to my individual name. Will Mortgage Express (No 2) get in touch with my boss to verify my salary?
- I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
- I am planning on removing a name from a joint mortgage and the Mortgage Express (No 2) need me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Blaenavon
lawyer to deal with the transfer of equity? They need to be on the Mortgage Express (No 2) conveyancing panel.
- My friend and I got a joint mortgage with Mortgage Express (No 2) on a apartment in 2013. 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 price what happens next? Would there be any potential problem with Mortgage Express (No 2) with him being responsible for the total mortgage as opposed to only half of it?
Sample of information requested in a conveyancer form relating to Mortgage Express (No 2) Transfer of Equity
Have you approached Mortgage Express (No 2) to seek consent to the Transfer of Equity
Please give the details of anyone to be added to the title deeds?
Please give the details of anyone to be removed from the title deeds?
Would you like us to draft you Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Who will be responsible for the costs of the Transfer of Equity?
Important warnings to consider in conjunction with 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
If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to 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 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 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 finalisation 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Content 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.