Recently asked questions relating to Platform transfer of equity
- Have recently separated from my ex of twenty years. I'm now living with my mum and dad and she wishes to remain in the apartment and buy me out. What percentage am I entitled to. Is it 50% of the equity after paying off the Platform home loan? I assume proper valuations are necessary but I would like to be sure that I'm getting I am not being taken advantage of
- My decree absolute is through as is the consent order. Now I need to deal with the transfer of equity at the HMLR and the Platform mortgage. I have asked Platform for the transfer of equity forms. What happens next?
- Platform have today agreed I can take over the mortgage on my home. I have applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry in addition?
- Last year purchased a apartment without my wife's name on the ownership paperwork. My conveyancer claimed it is because she was not in the mortgage with Platform. I'm wondering is there any way that I can add her name on the documents at HM Land Registry?
- My Platform mortgage is in joint names with ex, who is agreeable to be removed and put the house in my name alone. Platform will permit the transfer of equity to me solely. Do Platform call my company to check my salary?
- I currently have a joint Platform mortgage with my cousin and am looking into the possibility of him taking on the whole mortgage and extracting myself from it, so as to enable me to buy a place with my fiance. The remaining mortgage is approx 250k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty due?
- I am transferring my equity in property in Woodside to the other co-owners husband, they are sticking with Platform as the the existing lender. We are in heated discussion as to who should pay the fees for the transfer of equity. Is this usually shared or is one of us liable for the costs of?
Information that may be required from your conveyancing solicitor is likely to ask in relation to your Platform Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Who will be responsible for the costs of the Transfer of Equity?
Is it the case that one of the registered proprietors died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Can you provide the name(s) and addresse(s) of those who jointly own the premises with you?
Information to consider in conjunction with the above Platform 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 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 have a license to do so from the landlord. If such terms are not adhered to you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
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 conveyancer 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 finalisation of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Platform.
Preparing the Transfer of Equity with a Platform 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 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 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 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.