MPowered Mortgages transfer of equity: q and a’s

• My decree absolute is through as is the consent order. Now I need to deal with the transfer of equity for the property and the MPowered Mortgages mortgage. I have called MPowered Mortgages for the transfer of equity application. What are my next steps?
• What do I do if I am not happy with the conveyancer who undertook our transfer of equity conveyancing?
• My former husband are seeking to get a conveyancing solicitor lined up for a remortgage with MPowered Mortgages. Transfer of Equity conveyancing is also neededI have used the different comparison based services and the results are from all over UK. Is it important to instruct a lawyer local to us?
• I already have a home loan with MPowered Mortgages and am retaining my existing mortgaging but wish to have it in my sole name so my ex won't be on it any longer. How long can it take for the application to be processed?
• Me and my former wife and I are in the market for a dependable conveyancing solicitor to help me sell in a transfer of equity and remortgage with MPowered Mortgages. I I am concerned about appointing the wrong one but with plenty conveyancing solicitors who do transfer of equity conveyancing out there...who do I opt for?
• How and when do I cover the costs of stamp duty due for the transfer of equity in my property in my sole name which is taking place simultaneously with a remortgage via MPowered Mortgages?
• MPowered Mortgages have today agreed I can take over the home loan on my home. I previously applied for a transfer of equity but is this a transfer of ownership of the title deeds as well?

Questions that your conveyancing solicitor may ask in relation to your MPowered Mortgages Transfer of Equity

Caveats to be read in conjunction with the above MPowered Mortgages 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 MPowered Mortgages 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 obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of your covenants under 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 conveyancer will check with MPowered Mortgages 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 MPowered Mortgages 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 the conclusion of the transfer of equity transaction.

Preparing the Transfer of Equity with a MPowered Mortgages 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 MPowered Mortgages 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.