Frequently asked questions relating to MPowered Mortgages transfer of equity
- At what point do I incur stamp duty due for the transfer of equity in my home in my name alone which is happening at the same time as a switching mortgage via MPowered Mortgages?
- What should I be budgeting for when it comes to what conveyancing charges are for a transfer of equity? I'm in the process of remortgaging - new loan with MPowered Mortgages - and have been quoted £350 excluding VAT by MPowered Mortgages's approved conveyancer, Is this a reasonable price?
- Last year bought a flat without my wife's name on the title. My lawyer claimed it is due to the fact that she is not in the mortgage with MPowered Mortgages. Is it possible for me to put her name on the title?
- I am looking for a conveyancer to handle my transfer of equity. MPowered Mortgages are dealing with the remortgage. I thought of asking my financial adviser. I understand he may receive a referral fee for suggesting someone, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Any flaws you see in this way of thinking?
- I am in the process of mortgaging my flat in Rye
does my lawyer have to be on the MPowered Mortgages Solicitor panel. The conveyancing also involves a transfer of equity.
- Law month I split up with my wife of thirty years. I'm now living with my mum and dad and she wishes to stay in the flat and pay me off. What percentage do I get. Is it half of the equity after redeeming the mortgage with MPowered Mortgages? I assume proper valuations are required but I really need ensure that I'm getting what I am entitled to
- I am disposing of my equity in flat in Woodside to my co-owners husband, they are reapplying to MPowered Mortgages. We are haggling as to who should pay the costs of the transfer of equity. Is this normally split or is one party obliged to cover the fees for?
Questions that your conveyancing solicitor may ask about your MPowered Mortgages Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Has consent been obtained from MPowered Mortgages to the proposed transfer of equity?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Is the transfer of equity subject to a court order? If yes please supply a copy
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
Information to consider in conjunction with the above MPowered Mortgages transfer of equity Advice :
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 properties
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in breach of the lease. This could trigger 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 lawyer 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 market value of the property at finalisation of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with MPowered Mortgages.
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 conveyancing solicitor 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.