The Mortgage Business transfer of equity: q and a’s

• My ex are looking to get a conveyancing solicitor in place for a new mortgage with The Mortgage Business. Transfer of Equity conveyancing is also necessaryI have used the different rating based websites and the results are from all over England and Wales. Is it important to have a lawyer local to us?
• Our mortgage broker has recommended their conveyancer for our Transfer of Equity plus remortgage with The Mortgage Business - Is it not simpler better to just instruct them?
• My The Mortgage Business home loan we jointly entered into with ex, who has agreed to come off the mortgage and put the house in my name alone. The Mortgage Business will permit the transfer of equity to my individual name. Will The Mortgage Business get in touch with my boss to confirm my salary?
• I am hoping to remortgage my maisonette in Winchelsea moving from Godiva Mortgages to The Mortgage Business. The maisonette is currently in joint names but wish for it to be in my name only when I transfer. My husband is OK with this and is willing to transfer equity but neither of us want to get a second conveyancer involved.
• How do I go about adding or removing names (transfer of equity) to or from my The Mortgage Business mortgage account?
• I bought a property with my cousin in 2010 Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name comes off the The Mortgage Business mortgage. There is a meaningful difference between the value the lender say and what the property would sell for currently. Can you offer any advice?
• At what stage do I cover the costs of stamp duty chargeable for the transfer of equity in my house in my name alone which is taking place at the same time as a switching mortgage with The Mortgage Business?

Information that may be required from your conveyancing solicitor could ask about your The Mortgage Business Transfer of Equity

General Advice to read in in addition to the above The Mortgage Business 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 The Mortgage Business conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of the lease. This could potentially result in 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 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 is dependent on the valuation of the property at the time of completion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a The Mortgage Business 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 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 provided 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.