Sample questions relating to The Mortgage Lender transfer of equity

• I am transferring my share of a apartment in Warwick to the other co-owners fiance, they are reapplying to The Mortgage Lender. We are debating as to who must pay the charges for the transfer of equity. Should this be shared or is one party obliged to cover the fees for?
• How do I go about adding or removing names (transfer of equity) to or from my The Mortgage Lender mortgage account?
• Can I apply to borrow more money from The Mortgage Lender as part of a Transfer of Equity?
• I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
• I am am in need of a conveyancer to undertake my transfer of equity. The Mortgage Lender have been approached for a remortgage. I considered asking my financial adviser. I understand he will likely get a referral fee for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Is my logic misguided?
• I already have a mortgage with The Mortgage Lender and am keeping my existing mortgaging but wish to have it in my name only so my former partner won't be on it any longer. How long do The Mortgage Lender take to deal with the application?
• I currently have a joint The Mortgage Lender mortgage with my step-brother and am looking into the possibility of him taking on the whole mortgage and removing myself from it, to enable me to purchase somewhere with my fiance. The outstanding mortgage is about 175k, and the property value is about 600k. Is this a transfer of equity? Is land tax payable?

Sample of questions in a conveyancer questionnaire relating to The Mortgage Lender Transfer of Equity

General Advice to read in conjunction with the above The Mortgage Lender transfer of equity Advice :

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 Lender 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 freeholder. 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 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 Lender 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 Lender 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 market value of the property at finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a The Mortgage Lender Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If The Mortgage Lender 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 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.