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MPowered Mortgages

Common questions relating to MPowered Mortgages transfer of equity

  • I am thinking of mortgaging my apartment in Witham does my lawyer have to be on the MPowered Mortgages Conveyancing panel. The conveyancing also involves a transfer of equity.
  • I am in the process of removing a name from a joint mortgage and the MPowered Mortgages need me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Crabtree conveyancer to deal with the transfer of equity? They need to be on the MPowered Mortgages conveyancing panel.
  • I acquired a property with my cousin five.seven years ago Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name is removed the MPowered Mortgages mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
  • I own a apartment in Littleborough , with a MPowered Mortgages loan with my former husband. He and his new partner are going to acquire my share. We had the go ahead from MPowered Mortgages to substitute my name with hers. The transfer of equity has to be done by a conveyancing solicitor for MPowered Mortgages (apparently). Can we deal with the Land Registry formalities?
  • My former husband are looking to get a lawyer lined up for a new mortgage with MPowered Mortgages. Transfer of Equity conveyancing is also necessaryI have used the different rating based services and the results are from all over UK. Is it important to have a lawyer local to us?
  • I got my Decree Absolute in 2010. For some reason I never got around to change the ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. MPowered Mortgages is content to transfer the property and loan in my name (affordability checks done). Does my ex need a lawyer?
  • My friend and I got a joint mortgage with MPowered Mortgages on a flat a couple of years ago. I am now thinking of buying a house by myself and my friend would like to buy me out. Once we have agreed a price what happens next? Is there likely to be any problem with MPowered Mortgages with him being responsible for the total loan rather than only half of it?

Information that may be required from your lawyer is likely to ask regarding your MPowered Mortgages Transfer of Equity

Who will be responsible for the costs of the Transfer of Equity?

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Please give the details of anyone to be extracted from the property title?

Please provide a copy of your National Insurance Number?

Please give the details of anyone who jointly owns the premises with you?

Caveats to be read in supporting the above MPowered Mortgages transfer of equity Info :

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

If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in breach of the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

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 situations, 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.
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 lawyer 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.


Frequently asked questions relating to MPowered Mortgages transfer of equity