Frequently asked questions relating to The Mortgage Business transfer of equity
- My decree absolute has gone through as is the consent order. Now I need to deal with the transfer of equity on title deeds and the The Mortgage Business home loan. I have contacted The Mortgage Business for the transfer of equity application. What are my next steps?
- I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
- I currently have a joint The Mortgage Business mortgage with my cousin and am looking into the possibility of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to buy a property with my soon-to-be-wife. The remaining mortgage is in the region 175k, and the property value is approx 450k. Is this a transfer of equity? Is land tax involved?
- I purchased a property with my cousin six years ago Since then, we have both got married. We are now looking to do a transfer of equity so my name is removed the The Mortgage Business mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- Can I transfer the equity held in my property with my The Mortgage Business mortgage?
- I co-own a apartment in Dunnington
, with a The Mortgage Business loan with my former husband. He and his fiance are going to acquire my share. We had consent from The Mortgage Business to remove my name with hers. The transfer of equity has to be done by a lawyer for The Mortgage Business (apparently). Can we do the Land Registry change?
- Law month I separated from my partner of twenty years. I'm now living with my parents again and she wishes to remain in the flat and buy me out. What percentage do I get. Is it 50% of the equity after redeeming the mortgage with The Mortgage Business? I assume proper valuations are necessary but I really need ensure that I'm getting the best deal
Information that may be required from your conveyancing solicitor is likely to ask about your The Mortgage Business Transfer of Equity
Has consent been obtained from The Mortgage Business to the proposed transfer of equity?
Has one of the registered proprietors died? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please provide the name(s) and addresse(s) of anyone to be extracted from the title deeds?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please give the name(s) and addresse(s) of anyone who jointly owns the property with you?
Important warnings to consider 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 properties
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such terms are not adhered to you may be in violation of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
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 market value 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 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.
Content 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.