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Top seven questions relating to The Mortgage Business transfer of equity

  • I intend to refinance my flat in Timperley switching from Coventry BS to The Mortgage Business. The apartment is jointly owned but wish for it to be in my sole name when I remortgage. My husband is OK with this and is happy to transfer equity but neither of us want to incur lawyer fees.
  • As things stand I have a joint The Mortgage Business mortgage with my cousin and am looking into the possibility of him taking on the whole mortgage and extracting myself from it, so as to enable me to buy somewhere with my fiance. The outstanding mortgage is in the region 175k, and the property value is about 500k. Is this a transfer of equity? Is stamp duty due?
  • I already have a mortgage with The Mortgage Business and am retaining my existing mortgaging but wish to have have the equity transferred to my name alone so my ex will be removed from the title. How long can it take for the paperwork to be processed?
  • Is it possible to transfer the equity held in my property with my The Mortgage Business home loan?
  • In 2013 I bought a apartment without my partner's name on the title documents. My lawyer said it is because she was not in the mortgage with The Mortgage Business. I'm wondering is there any way that I can put her name on the deeds?
  • Me and my partner jointly own a property in Heathfield . Home loan is with The Mortgage Business. I would like to transfer full ownership to him with no passing of money but without using a lawyer. Is this likely to be simple?
  • Will I incur any fees for a Transfer of Equity where the existing mortgage is with The Mortgage Business?

Examples of information requested in a conveyancer questionnaire relating to The Mortgage Business Transfer of Equity

Can you give the name(s) and addresse(s) of those who jointly own the property with you?

If you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Please provide a copy of your National Insurance Number?

Please give the name(s) and addresse(s) of anyone to be added to the title deeds?

Is the transfer of equity subject to a court order? If yes please supply a copy

Caveats to be read in conjunction with the above The Mortgage Business transfer of equity Info :

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

If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such terms are not adhered to 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 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 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 conveyancing.
If you do not keep up the payments on your mortgage with The Mortgage Business your property may be repossessed.

Preparing the Transfer of Equity with a The Mortgage Business Mortgage

When it comes to preparing the the Land Registry documents your lawyer 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 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.


Frequently asked questions relating to The Mortgage Business transfer of equity