Top seven questions relating to Rooftop Mortgages transfer of equity
- Our financial adviser has recommended their conveyancing solicitor for the Transfer of Equity plus remortgage with Rooftop Mortgages - Surely it’s advisable to just use them?
- I got my Decree Absolute in 2010. Foolishly I never got around to transfer ownership from both our names to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Rooftop Mortgages is willing to transfer the full equity in my name (financial checks done). Does my ex need a lawyer?
- Law week I split up with my wife of twenty years. I'm now living with my parents again and she wishes to stay in the property and pay me off. What portion am I entitled to. Is it 50% of the equity after paying off the Rooftop Mortgages home loan? I assume proper valuations are necessary but I really need to be confident that I'm getting I am not being taken advantage of
- What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my Rooftop Mortgages mortgage account?
- I purchased a property with my brother 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 Rooftop Mortgages mortgage. There is a 40k difference between the value the lender say and what the property would sell for currently. Can you offer any advice?
- Can I apply to request a further advance from Rooftop Mortgages as part of a Transfer of Equity?
- I am selling my share of a flat in Woodside to the other co-owners husband, they are sticking with Rooftop Mortgages being the the existing mortgage company. We are in heated discussion as to who should cover the charges for the transfer of equity. Should this be shared or is one party liable for the legal bill?
Sample of information requested in a conveyancer form concerning a 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
Can you give the name(s) and addresse(s) of those who jointly own the property with you?
Have you approached Rooftop Mortgages to obtain consent to the Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Where you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
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?
Information to consider in supplemental 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
If your property is leasehold, 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 your covenants under 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 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 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 is dependent on the market value of the property at the conclusion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Rooftop Mortgages.
Preparing the Transfer of Equity with a Rooftop 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 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 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 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.