Frequently asked questions relating to The Mortgage Lender transfer of equity

• What should I be budgeting for when it comes to what conveyancing costs are for a transfer of equity? I need to transfer equity and refinance - moving over to The Mortgage Lender - and have been quoted £250 plus VAT by The Mortgage Lender's approved , Have I been over quoted?
• I purchased a flat with my cousin in 2010 Since purchasing the property, we have both got married. We are now intending to do a transfer of equity so my name is taken off the The Mortgage Lender mortgage. There is a 40k difference between the value the The Mortgage Lender hold and what the property would sell for currently. Can you offer any advice?
• My The Mortgage Lender mortgage we jointly entered into with ex, he has agreed to be removed and let me have the property. The Mortgage Lender have consented to the transfer of equity to my individual name. Do The Mortgage Lender call my employer to verify my salary?
• Can I apply to borrow more money from The Mortgage Lender as part of a Transfer of Equity?
• I am in the market for a quality conveyancing solicitor to assist in a transfer of equity and remortgage with The Mortgage Lender. I I am fearful of appointing the wrong one and there are so many conveyancing practices who do transfer of equity conveyancing to pick from...who's the best?
• I understand we would need at least AP1 and Transfer Deed. Is this true?
• My partner and I have equal shares in a BTL. I am a top rate tax payer. Ideally I wish to do a transfer of equity to her sole name with a view to reduce our tax on rental income. If The Mortgage Lender are fine with this the legal fees are not prohibitive. However what happens when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.

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

Caveats to be read in supplemental 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 titles

If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in breach 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 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 lawyer 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 valuation 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 lawyer 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. Lender Panel.com Ltd will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.