Top seven questions relating to The Mortgage Business transfer of equity

• I purchased a house with my cousin in 2010 Since then, we have both got married. We are now intending to do a transfer of equity so my name comes off the The Mortgage Business mortgage. There is a significant difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
• How and when do I pay the Stamp Duty Land Tax payable for the transfer of equity in my house in my sole name which is happening at the same time as a switching mortgage via The Mortgage Business?
• What legal advice do I need when doing a transfer of equity where the home loan is to remain with The Mortgage Business?
• Me and my former fiance and I are in the market for a value for money conveyancing solicitor to assist in a transfer of equity and refinance with The Mortgage Business. I want to avoid being ripped off but with lots of conveyancing solicitors who do transfer of equity conveyancing out there...who's the best?
• How do I go about adding or subtracting names (transfer of equity) to or from my The Mortgage Business mortgage account?
• Last year bought a property without my wife's name on the title documents. My conveyancer advised it is due to the fact that she was not in the loan offer with The Mortgage Business. Is it possible for me to put her name on the title?
• I currently have a joint The Mortgage Business mortgage with my brother and am investigating the option of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to buy a place with my soon-to-be-wife. The remaining mortgage is in the region 250k, and the property value is about 450k. Is this a transfer of equity? Is land tax involved?

Examples of information requested in a lawyer questionnaire concerning a The Mortgage Business Transfer of Equity

Important warnings to consider in supplemental 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 titles

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed 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 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 conveyancer 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 lawyer 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 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.