Questions and answers: The Mortgage Lender transfer of equity
- Will I incur any charges for a Transfer of Equity where the current mortgage is with The Mortgage Lender?
- I am hoping to refinance my flat in Heathfield
moving from Birmingham Midshires to The Mortgage Lender. The flat is jointly owned but propose for it to be in my sole name once I switch. My former partner is OK with this and is happy to sign a form but neither of us want to get a second conveyancing solicitor involved.
- Been looking at consumer forums that solicitors are more expensive than conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor where I need to be transferring equity and at the same time switching mortgage with The Mortgage Lender
- I currently have a joint The Mortgage Lender mortgage with my brother and am looking into the feasibility of him assuming responsibility for the outstanding mortgage and removing myself from it, so as to enable me to purchase a place with my fiance. The remaining mortgage is approx 250k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty due?
- Law month I split up with my partner of 18 years. I'm now back with my parents again and she wishes to stay in the property and pay me off. What portion am I entitled to. Is it half of the equity after redeeming the The Mortgage Lender home loan? I assume proper valuations are required but I would like to be sure that I'm getting what I am entitled to
- I am completing a The Mortgage Lender transfer of equity form and have come to the questions that asks about debts etc. I do some debts that I have been paying off since 2007, I understand that they have long since disappeared from my credit records. Am I obliged to disclose these?
- I am transferring my equity in house in Warwick to the other co-owners fiance, they are sticking with The Mortgage Lender being the the existing lender. We are haggling as to who should pay the charges for the transfer of equity. Should this be split or is one of us obliged to cover the charges for?
Information that may be required from your conveyancer may ask about your The Mortgage Lender Transfer of Equity
Can you provide the details of those who jointly own the premises with you?
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 give the name(s) and addresse(s) of anyone to be added to the title deeds?
Where you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please provide a copy of your National Insurance Number?
Please provide the name(s) and addresse(s) of anyone to be extracted from the property title?
Important warnings to consider in conjunction with the above The Mortgage Lender transfer of equity Questions and Answers :
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
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.
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 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 the time of completion of the transfer of equity transaction.
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 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 conveyancer 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.