Common questions relating to The Mortgage Business transfer of equity

• At what point do I incur stamp duty payable for the transfer of equity in my home in my sole name which is happening simultaneously with a remortgage with The Mortgage Business?
• My existing home loan is with The Mortgage Business. Can I transfer equity to someone under 18 years old?
• Me and my former partner and I are searching for a responsive conveyancing solicitor to help me sell in a transfer of equity and remortgage with The Mortgage Business. I I am fearful of appointing the wrong one but with many conveyancing practices who do transfer of equity conveyancing out there...how do I know which is best appoint?
• Having been 3 years estranged I have decided to relinquish up my interest in our former home to my husband who is re-mortgaging with The Mortgage Business. Could this transfer of equity be completed within four weeks?
• My partner and myself have 50:50 shares in a investment property. I am a top rate tax payer. Preferably I wish to complete a transfer of equity to her sole name in order mitigate tax on the letting income. If The Mortgage Business are fine with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the title documents am I giving up my CGT relief.
• I understand we would need at least AP1 and TR1. Is this true?
• I jointly own a property in Rye , with a The Mortgage Business loan with my ex partner. Him and his fiance are going to acquire my share. We had the go ahead from The Mortgage Business to substitute my name with hers. The transfer of equity has to be done by a lawyer for The Mortgage Business (apparently). In order to save fees can I deal with the Land Registry formalities?

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

Important warnings to consider in in addition to the above The Mortgage Business transfer of equity Info :

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 properties

If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. 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 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 is dependent 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 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 conveyancer 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.