Recently asked questions relating to The Mortgage Business transfer of equity

• Is it possible to apply to request a further advance from The Mortgage Business as part of a Transfer of Equity?
• Do I need legal advice when doing a transfer of equity where the mortgage is to remain with The Mortgage Business?
• How do I go about adding or removing names (transfer of equity) to or from my The Mortgage Business mortgage account?
• Me and my former wife and I are in the market for an affordable conveyancing solicitor to help me sell in a transfer of equity and refinance with The Mortgage Business. I am aware of the possibility of getting ripped off and there are lots of conveyancing solicitors who do transfer of equity conveyancing to pick from...how do I know which one is best appoint?
• I got divorced in 2011. Foolishly I never got around to transfer ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. The Mortgage Business is happy to transfer the full equity in my name (affordability checks done). Does she need any legal representation?
• My wife and I have equal shares in a buy to let. I am a top rate tax payer. Ideally I wish to complete a transfer of equity into her name to reduce our tax on the letting income. If The Mortgage Business are happy with this the legal fees are not prohibitive. However what happens when we sell? Would my GGT relief be lost.
• Have recently separated from my ex of thirty years. I'm now back with my mum and dad and she wants to remain in the flat and pay me off. What portion do I get. Is it 50% of the equity after discharging the The Mortgage Business home loan? I assume proper valuations are required but I would like to be sure that I'm getting what I am entitled to

Sample of information requested in a conveyancing solicitor questionnaire concerning a The Mortgage Business Transfer of Equity

Information to consider in further to the above The Mortgage Business transfer of equity Questions and Answers :

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 The Mortgage Business conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in 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 strictly observed you may be in breach of the lease. This could trigger 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 The Mortgage Business 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 The Mortgage Business 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 time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a The Mortgage Business Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If The Mortgage Business 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.

Information contained within 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.