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

  • Our mortgage broker has recommended their conveyancing solicitor for the Transfer of Equity plus remortgage with The Mortgage Business - Is it not simpler advisable to just use them?
  • Do I need legal representation when doing a transfer of equity where the mortgage is to remain with The Mortgage Business?
  • Have recently split up with my wife of twenty years. I'm now back with my mum and dad and she wants to remain in the property and pay me off. What portion do I get. Is it 50% of the equity after discharging the mortgage with The Mortgage Business? I assume proper valuations are required but I really need to be sure that I'm getting I am not being walked over
  • The Mortgage Business yesterday agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership at HMLR as well?
  • What can I do where I am dissatisfied with the conveyancer who undertook our transfer of equity conveyancing?
  • I intend to remortgage my flat in Sedgefield switching from RBS to The Mortgage Business. The home is currently in joint names but wish for it to be in my sole name as and when I switch. My wife has agreed to this and is happy to sign a form but neither of us want to incur lawyer fees.
  • I purchased a house with my brother six years ago 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 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?

Sample of questions in a conveyancing solicitor questionnaire relating to The Mortgage Business Transfer of Equity

Please let us know where you are providing any payment for the Transfer of Equity and to whom and specify any such sums?

Who will be responsible for the costs of the Transfer of Equity?

Has one of the registered owners passed away? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.

Has consent been obtained from The Mortgage Business to the proposed transfer of equity?

Please provide the name(s) and addresse(s) of anyone to be removed from the property title?

Please provide the details of those who jointly own the property with you?

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

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

If your property is leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in breach of your covenants under 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 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 time of completion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with The Mortgage Business.

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 lawyer 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.


Frequently asked questions relating to The Mortgage Business transfer of equity