Common questions relating to MPowered Mortgages transfer of equity
- Three years ago I bought a apartment without my fiance’s name on the title. My lawyer said it is because she is not in the loan offer with MPowered Mortgages. Is it possible for me to add her name on the deeds?
- I own a apartment in Rye
, with a MPowered Mortgages mortgage with my ex husband. Him and his fiance are going to acquire my share. We had approval from MPowered Mortgages to substitute my name with hers. The transfer of equity has to be completed by a conveyancer for MPowered Mortgages (supposedly). In order to save fees can I deal with the Land Registry formalities?
- My partner and I have 50:50 shares in a BTL. I am a higher rate tax payer. Preferably I would like to do a transfer of equity into her name with a view to reduce our tax on rental income. If MPowered Mortgages are happy with this the legal fees are inexpensive. However what happens when we dispose of the property? Would my GGT relief be lost.
- 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 paperwork. Can you recommend a reasonably priced Friern Barnet
conveyancer to deal with the transfer of equity? They need to be on the MPowered Mortgages conveyancing panel.
- My financial adviser has suggested using their conveyancing solicitor for my Transfer of Equity plus remortgage with MPowered Mortgages - Surely it’s better to just instruct them?
- What are my options where I am dissatisfied with the conveyancing solicitor who did my transfer of equity conveyancing?
- My ex-wife and I are in the market for an affordable conveyancing solicitor to help me sell in a transfer of equity and refinance with MPowered Mortgages. I I am concerned about appointing the wrong one and there are lots of conveyancing solicitors who do transfer of equity conveyancing out there...who do I opt for?
Sample of information requested in a lawyer form relating to MPowered Mortgages Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
If you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Is the transfer of equity subject to a court order? If yes please supply a copy
Please clarify if you are providing any payment for the Transfer of Equity and to whom and specify the amount?
Would you like us to prepare Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Please give the details of anyone to be added to the property title?
General Advice to read in conjunction with the above MPowered Mortgages transfer of equity Advice :
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 premises
Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with 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 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 market value of the property at the time of completion 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.
Content on 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.
