Questions and answers: Rely Mortgages transfer of equity
- I bought a flat with my cousin in 2009 Since then, we have both got married. We are now intending to do a transfer of equity so my name comes off the Rely Mortgages mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- Rely Mortgages yesterday agreed I can take over the home loan on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds as well?
- My former husband are seeking to get a lawyer in place for a new mortgage with Rely Mortgages. Transfer of Equity conveyancing is also requiredI have used the different rating based services and the results are from all over England and Wales. Is it important to instruct a lawyer local to us?
- I am in the process of removing a name from a joint mortgage and the Rely Mortgages need me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Witham
conveyancer to deal with the transfer of equity? They need to be on the Rely Mortgages conveyancing panel.
- I currently have a joint Rely Mortgages mortgage with my step-brother and am investigating the option of him assuming responsibility for the whole mortgage and extracting myself from it, to enable me to buy a property with my soon-to-be-wife. The remaining mortgage is about 250k, and the property value is about 450k. Is this a transfer of equity? Is land tax due?
- My decree absolute is through as is the consent order. Now I must deal with the transfer of equity for the property and the Rely Mortgages home loan. I have called Rely Mortgages for the transfer of equity forms. What do I do now?
- I am in the process of remortgaging my house in Rye
does my lawyer have to be on the Rely Mortgages Conveyancing panel. The conveyancing also involves a transfer of equity.
Information that may be required from your conveyancing solicitor may ask about your Rely Mortgages Transfer of Equity
Has one of the registered proprietors passed away? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
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” Form.
Please provide the details of anyone to be removed from the property title?
Have you approached Rely Mortgages to seek consent to the Transfer of Equity
Please let us know of you wish us to prepare Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Caveats to be read in in addition to the above Rely 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 Rely Mortgages conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not complied with you may be in breach of your covenants under 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 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 lawyer will check with Rely 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 Rely 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.
Your property may be repossessed if you do not keep up repayments on your mortgage with Rely Mortgages.
Preparing the Transfer of Equity with a Rely 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 Rely 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.
