Top seven questions relating to The Mortgage Business transfer of equity

• The Mortgage Business have just agreed I can take over the mortgage on the flat. I have applied for a transfer of equity but is this a transfer of ownership at HMLR on top?
• My fiance and myself equally own a buy to let. I am a higher rate tax payer. Ideally I wish to do a transfer of equity into her name in order reduce our tax on the letting income. If The Mortgage Business are happy with this the legal fees are not high. What are the implications when we dispose of the property? Would my GGT relief be lost.
• Is it possible to apply to request more money from The Mortgage Business as part of a Transfer of Equity?
• What if my application doesn't meet The Mortgage Business lending criteria for a transfer of equity?
• I already have a home loan with The Mortgage Business and am maintaining my current mortgaging but wish to have have the equity transferred to my name alone so my ex won't be on it any longer. How long do The Mortgage Business take to deal with the application?
• My divorce is through as is the consent order. Now I have to address the transfer of equity at the land registry and the The Mortgage Business home loan. I have contacted The Mortgage Business for the transfer of equity application. What are my next steps?
• My The Mortgage Business home loan is in joint names with ex, who is agreeable to come off the deeds 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 company to confirm my salary?

Questions that your lawyer could ask in relation to your The Mortgage Business Transfer of Equity

Important warnings to consider in conjunction with the above The Mortgage Business transfer of equity information :

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 The Mortgage Business 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 have a requirement for notices to be served and 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 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 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 varies based on the valuation of the property at the conclusion 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 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 conveyancer 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 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.