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The Mortgage Lender transfer of equity: q and a’s

  • I got my Decree Absolute in 2010. I simply never got around to transfer ownership from both our names to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. The Mortgage Lender is content to transfer the full equity in my name (affordability checks done). Does my ex need a conveyancer?
  • I am looking for a conveyancer to deal with my transfer of equity. The Mortgage Lender are dealing with the remortgage. I considered asking my mortgage broker. I understand he will likely receive a referral fee for recommending a firm, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Any flaws you see in this way of thinking?
  • My mother died half a year ago leaving a unencumbered house to me and my half brother in equal shared. He has always lived in the property, there was a clause in the will specifying that the propertycould not be sold for 24 months after her passing so he could remain there for a prescribed period. He now wishes to remain in the property beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the usual way to buy my half from me?
  • I am considering refinancing my property in Winchelsea does my lawyer have to be on the The Mortgage Lender Conveyancing panel. The conveyancing also involves a transfer of equity.
  • Given that we have been four years apart I have opted to give up my share of our flat to my husband who is refinancing with The Mortgage Lender. Can a transfer of equity be done in less than 28 days?
  • My divorce is through as is the consent order. Now I need to address the transfer of equity for the property and the The Mortgage Lender mortgage. I have asked The Mortgage Lender for the transfer of equity application. What are my next steps?
  • I am hoping to refinance my apartment in Witham changing from Skipton to The Mortgage Lender. The maisonette is currently in joint names but wish for it to be in my name only when I switch. My wife has agreed to this and is willing to sign a form but neither of us want to get a second lawyer involved.

Examples of information requested in a conveyancing solicitor form relating to The Mortgage Lender Transfer of Equity

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 the details of anyone to be added to the title deeds?

Please provide the name(s) and addresse(s) of anyone to be removed from the property title?

Please provide a copy of your National Insurance Number?

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Who will be responsible for the costs of the Transfer of Equity?

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

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 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 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 conveyancing solicitor 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 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 Lender your property may be repossessed.

Preparing the Transfer of Equity with a The Mortgage Lender 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 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 conveyancing solicitor 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 Lender transfer of equity