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Questions and answers: Rooftop Mortgages transfer of equity

  • I currently have a joint Rooftop Mortgages mortgage with my step-brother and am investigating the possibility of him taking on the outstanding mortgage and removing myself from it, so as to enable me to purchase somewhere with my soon-to-be-wife. The remaining mortgage is about 300k, and the property value is about 500k. Is this a transfer of equity? Is land tax due?
  • Me and a friend got a joint mortgage with Rooftop Mortgages on a house in 2013. I am now looking to get a house on my own and my friend would like to buy me out. Assuming we can agree a price where do we go? Would there be any potential issue with Rooftop Mortgages with him being responsible for the total loan rather than only part of it?
  • My -ex-husband and I are are looking to find a responsive conveyancing solicitor to help me sell in a transfer of equity and remortgage with Rooftop Mortgages. I I am fearful of appointing the wrong one and there's lots of conveyancing firms who do transfer of equity conveyancing out there...how do I know which one to appoint?
  • Will I incur any charges for a Transfer of Equity where the existing mortgage is with Rooftop Mortgages?
  • My existing mortgage is with Rooftop Mortgages. Can I transfer equity to someone under eighteen years old?
  • My divorce has gone through as is the consent order. Now I need to deal with the transfer of equity on title deeds and the Rooftop Mortgages home loan. I have contacted Rooftop Mortgages for the transfer of equity application. What are my next steps?
  • My Rooftop Mortgages home loan we jointly entered into with ex, who has agreed to be removed and let me have the property. Rooftop Mortgages have consented to the transfer of equity to me solely. Will Rooftop Mortgages call my company to verify my salary?

Information that may be required from your conveyancer could ask about your Rooftop Mortgages Transfer of Equity

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Who will be responsible for the costs of the Transfer of Equity?

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?

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

Please provide the name(s) and addresse(s) of anyone to be removed from the property title?

Please give the details of anyone to be added to the property title?

Important warnings to consider in further to the above Rooftop Mortgages transfer of equity information :

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 Rooftop Mortgages conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

Should the tenure of your property be leasehold, 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 violation of 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 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 conveyancer will check with Rooftop 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 Rooftop 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 finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Rooftop Mortgages your property may be repossessed.

Preparing the Transfer of Equity with a Rooftop 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 Rooftop 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 conveyancing solicitor 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.


Frequently asked questions relating to Rooftop Mortgages transfer of equity