Top seven questions relating to MPowered Mortgages transfer of equity

• Is it possible to apply to request a further advance from MPowered Mortgages as part of a Transfer of Equity?
• I am am in need of a lawyer to deal with my transfer of equity. MPowered Mortgages have been approached for a remortgage. I considered asking my financial adviser. I am lead to believe he may get a kickback for suggesting a firm, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Is my logic misguided?
• I bought a flat with my cousin in 2010 Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name comes off the MPowered Mortgages mortgage. There is a meaningful difference between the value the MPowered Mortgages say and what the property would sell for currently. Can you offer any advice?
• I am in the process of removing a name from a joint mortgage and the MPowered Mortgages need me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Dunnington conveyancing solicitor to deal with the transfer of equity? They need to be on the MPowered Mortgages conveyancing panel.
• My existing mortgage is with MPowered Mortgages. Can I transfer equity to someone less than eighteen years old?
• My partner and I have 50:50 shares in a buy to let. I am a higher rate tax payer. Ideally I wish to do a transfer of equity to her sole name in order reduce our tax on rental income. If MPowered Mortgages are content with this the legal fees are inexpensive. What are the implications when we dispose of the property? As I would no longer be on the deeds am I giving up my CGT relief.
• Me and my partner co-own a property in Crabtree . Home loan is with MPowered Mortgages. I wish to transfer full ownership to him with no payment of money but without using a conveyancer. Do you think this should be straightforward?

Sample of questions in a conveyancing solicitor questionnaire concerning a MPowered Mortgages Transfer of Equity

Important warnings to consider in supplemental the above MPowered Mortgages transfer of equity Info :

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

If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. 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.

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 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 is dependent on the valuation of the property at finalisation 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 conveyancing solicitor 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.