Top seven questions relating to MPowered Mortgages transfer of equity
- At what stage do I cover the costs of the Stamp Duty Land Tax due for the transfer of equity in my property in my sole name which is happening at the same time as a refinancing with MPowered Mortgages?
- I am transferring my share of a flat in Warwick to the other co-owners fiance, they are reapplying to MPowered Mortgages. We are haggling as to who must cover the fees for the transfer of equity. Should this be split or is one of us obliged to cover the fees for?
- I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
- I currently have a joint MPowered Mortgages mortgage with my cousin and am looking into the feasibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, to enable me to purchase a place with my fiance. The outstanding mortgage is about 175k, and the property value is about 450k. Is this a transfer of equity? Is stamp duty due?
- My MPowered Mortgages mortgage we jointly entered into with ex, he is agreeable to be removed and let me have the property. MPowered Mortgages will permit the transfer of equity to me solely. Will MPowered Mortgages contact my boss to confirm my salary?
- I am answering a MPowered Mortgages transfer of equity application and have arrived at the questions regarding debts etc. I do some debts that I have been discharging for a number of years, I understand that they have long since disappeared from my credit score. Do I need to set these out?
- Have recently split up with my ex of 18 years. I'm now back with my mum and dad and she wishes to remain in the property and buy me out. What percentage do I get. Is it half of the equity after discharging the MPowered Mortgages home loan? I assume proper valuations are necessary but I would like ensure that I'm getting I am not being walked over
Sample of questions in a conveyancer form concerning a MPowered Mortgages Transfer of Equity
Please inform us where you are providing any payment for the Transfer of Equity and to whom and give details of any such sums?
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 extracted from the title deeds?
Please provide a copy of your National Insurance Number?
If you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Caveats to be read in supporting the above MPowered Mortgages transfer of equity information :
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 MPowered Mortgages conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in violation 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 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 time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with MPowered Mortgages your property may be repossessed.
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.