Platform transfer of equity: q and a’s

• My friend and I got a joint mortgage with Platform on a apartment a couple of years ago. I am now looking to get a house on my own and my friend would like to buy me out. Once we have agreed a price what happens next? Would there be any potential concerns with Platform with him being on the hook for the total mortgage as opposed to only half of it?
• What do I do if I am unhappy with the lawyer who conducted my transfer of equity conveyancing?
• I am transferring my equity in flat in Warwick to my co-owners fiance, they are sticking with Platform being the the existing lender. We are debating as to who should cover the legal bill for the transfer of equity. Should this be split or is one party liable for the charges for?
• I plan to refinance my home in Ampthill changing from Barnsley BS to Platform. The home is currently in joint names but intend for it to be in my name only as and when I transfer. My former partner has verbally consented to this and is willing to transfer equity but neither of us want to get a second conveyancer involved.
• My current home loan is with Platform. Can I transfer equity to someone under eighteen years old?
• At what point do I incur the Stamp Duty Land Tax payable for the transfer of equity in my property in my sole name which is taking place simultaneously with a switching mortgage via Platform?
• I co-own a house in Crabtree , with a Platform loan with my ex husband. Him and his fiance are going to buy me out. We had the go ahead from Platform to substitute my name with hers. The transfer of equity has to be done by a lawyer for Platform (supposedly). Is it possible for us to do the Land Registry formalities?

Examples of information requested in a conveyancing solicitor form relating to Platform Transfer of Equity

General Advice to read in further to the above Platform transfer of equity Questions and Answers :

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 Platform 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 landlord. If such conditions are not complied with you may be in violation of your covenants under 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 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 conveyancing solicitor will check with Platform 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 Platform 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 the time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Platform 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 Platform 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 conveyancer 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 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.