Rely Mortgages transfer of equity example support desk enquires

• What do I do if I am not happy with the conveyancing solicitor who did our transfer of equity conveyancing?
• My brother and I got a joint mortgage with Rely Mortgages on a house about a year ago. I am now thinking of purchasing a apartment by myself and my friend would like to buy me out. Assuming we can agree an amount where do we go? Is there likely to be any issue with Rely Mortgages with him being responsible for the total mortgage as opposed to only half of it?
• Rely Mortgages yesterday agreed I can take over the home loan on my home. I previously applied for a transfer of equity but is this a transfer of ownership at HMLR on top?
• I already have a mortgage with Rely Mortgages and am keeping my existing mortgaging but wish to have have the equity transferred to my sole name so my former partner won't be on it any longer. How long do Rely Mortgages take to process the application?
• Our financial adviser has recommended their lawyer for the Transfer of Equity plus remortgage with Rely Mortgages - Surely it’s easier to just use them?
• What should I be budgeting for when it comes to what legal costs are for a transfer of equity? I'm in the process of remortgaging - moving over to Rely Mortgages - and have been quoted Three Hundred pounds plus VAT by Rely Mortgages's approved lawyer, Have I been over quoted?
• I currently have a joint Rely Mortgages mortgage with my cousin and am looking into the option of him assuming responsibility for the outstanding mortgage and extracting myself from it, so as to enable me to purchase a place with my partner. The remaining mortgage is in the region 175k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty involved?

Examples of questions in a conveyancing solicitor form concerning a Rely Mortgages Transfer of Equity

Caveats to be read in further to the above Rely Mortgages transfer of equity Info :

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 Rely Mortgages conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with you may be in violation of 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 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.

Preparing the Transfer of Equity with a Rely Mortgages 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 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 conveyancer 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 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.