Recently asked questions relating to The Mortgage Business transfer of equity
- I am considering refinancing my home in Rye
does my lawyer need to be on the The Mortgage Business Conveyancing panel. The conveyancing also involves a transfer of equity.
- The Mortgage Business have just agreed I can take over the home loan on the flat. I have applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry on top?
- I currently have a joint The Mortgage Business mortgage with my cousin and am looking into the option of him assuming responsibility for the outstanding mortgage and extracting myself from it, to enable me to buy somewhere with my soon-to-be-wife. The outstanding mortgage is in the region 300k, and the property value is in the region 500k. Is this a transfer of equity? Is stamp duty payable?
- I bought a house with my cousin in 2008 Since buying the property, 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 value the mortgage company say and what the property would sell for currently. Can you offer any advice?
- I am in the process of removing a name from a joint mortgage and the The Mortgage Business require me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Timperley
conveyancing solicitor to deal with the transfer of equity? They need to be on the The Mortgage Business conveyancing panel.
- My fiance and I have equal shares in a investment property. I am a top rate tax payer. Preferably I would like to complete a transfer of equity into her name in order reduce our tax on rental income. Assuming The Mortgage Business are fine with this the legal fees are not prohibitive. What are the implications when we sell? Would my GGT relief be lost.
- My partner and I jointly own a property in Miles Platting
. Home loan is with The Mortgage Business. I want to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Is this likely to be easy to so?
Sample of information requested in a conveyancer form relating to The Mortgage Business Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Who will be responsible for the costs of the Transfer of Equity?
Is it the case that one of the registered owners passed away? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?
Please clarify where you are providing any payment for the Transfer of Equity and to whom and disclose any such sums?
If you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Important warnings to consider in further to the above The Mortgage Business transfer of equity Advice :
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
Should the tenure of your property be leasehold, 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 violation of your covenants under 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 conveyancing solicitor 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 finalisation 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 conveyancing solicitor 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 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.
