Frequently asked questions relating to Platform transfer of equity
- What if my application doesn't meet Platform lending criteria for a transfer of equity?
- I already have a home loan with Platform and am maintaining my existing mortgaging but wish to have have the equity transferred to my name alone so my ex won't be on it any longer. How long can it take for the paperwork to be processed?
- I am in the process of removing a name from a joint mortgage and the Platform require me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Timperley
conveyancer to deal with the transfer of equity? They need to be on the Platform conveyancing panel.
- My brother and I got a joint mortgage with Platform on a property about a year ago. I am now thinking of buying a property on my own and my friend would like to buy me out. Assuming we can agree a price what are the next steps? Would there be any potential issue with Platform with him being on the hook for the total mortgage as opposed to only part of it?
- My Platform home loan we jointly entered into with ex, he has agreed to be removed and put the house in my name alone. Platform have consented to the transfer of equity to my individual name. Do Platform call my employer to verify my salary?
- I own a house in Witham
, with a Platform mortgage with my ex husband. He and his new partner 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 completed by a conveyancing solicitor for Platform (supposedly). Is it possible for us to do the Land Registry formalities?
- I acquired a flat with a friend in 2009 Since then, we have both got married. We are now looking to do a transfer of equity so my name comes off the Platform mortgage. There is a significant difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
Examples of questions in a conveyancing solicitor questionnaire concerning a Platform Transfer of Equity
If you are adding a person 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.
Please provide the details of anyone to be added to the title deeds?
Please give the details of those who jointly own the premises with you?
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 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 provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Important warnings to consider in conjunction with the above Platform transfer of equity Advice :
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 premises
If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in breach of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 lawyer 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 varies based on the valuation of the property at the conclusion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Platform your property may be repossessed.
Preparing the Transfer of Equity with a Platform Mortgage
When it comes to preparing the the Land Registry documents your conveyancer 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 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.