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Recently asked questions relating to The Mortgage Lender transfer of equity

  • What if my application doesn't meet The Mortgage Lender lending criteria for a transfer of equity?
  • What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my The Mortgage Lender mortgage account?
  • Me and a friend got a joint mortgage with The Mortgage Lender on a property about a year ago. I am now thinking of purchasing a house on my own and my friend would like to buy me out. Assuming we can agree an amount where do we go? Would there be any potential problem with The Mortgage Lender with him being responsible for the total loan as opposed to only part of it?
  • Can I transfer the equity held in my property with my The Mortgage Lender mortgage?
  • The financial adviser has suggested using their lawyer for my Transfer of Equity plus remortgage with The Mortgage Lender - Is it not simpler better to just use them?
  • My fiance and myself jointly own a investment property. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity into her name to mitigate tax on rental income. Assuming The Mortgage Lender are content with this the legal fees are inexpensive. What are the implications when we sell? As I would no longer be on the title documents am I giving up my CGT relief.
  • I currently have a joint The Mortgage Lender mortgage with my step-brother and am investigating the option of him assuming responsibility for the whole mortgage and removing myself from it, so as to enable me to purchase a place with my soon-to-be-wife. The remaining mortgage is about 200k, and the property value is about 500k. Is this a transfer of equity? Is land tax due?

Questions that your lawyer is likely to ask about your The Mortgage Lender Transfer of Equity

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?

If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Please provide the details of those who jointly own the property with you?

Has consent been obtained from The Mortgage Lender to the proposed transfer of equity?

We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)

Is it the case that one of the registered owners passed away? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..

Important warnings to consider in supporting the above The Mortgage Lender 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 Lender conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to 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 finalisation of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with The Mortgage Lender.

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 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.


Frequently asked questions relating to The Mortgage Lender transfer of equity