The Mortgage Lender transfer of equity: q and a’s
- I co-own a flat in Winchelsea
, with a The Mortgage Lender mortgage with my former husband. Him and his fiance are going to acquire my share. We had approval from The Mortgage Lender to substitute my name with hers. The transfer of equity needs to be done by a lawyer for The Mortgage Lender (supposedly). Is it possible for us to deal with the Land Registry change?
- When it comes to transfer of equity conveyancing involving a remortgage with The Mortgage Lender should I be invoiced VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- I already have a home loan with The Mortgage Lender and am retaining my current mortgaging but wish to have it in my sole name so my former partner will be removed from the mortgage. How long can it take for the forms to be processed?
- What are the average legal costs are for a transfer of equity? I'm in the process of remortgaging - moving over to The Mortgage Lender - and have been quoted £350 including VAT by The Mortgage Lender's appointed conveyancer, Is this is a good price or not?
- My The Mortgage Lender mortgage is in joint names with ex, who 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. Will The Mortgage Lender write my company to verify my salary?
- I got my Decree Absolute four years ago. I simply never got around to change the ownership from the current 'joint' status to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. The Mortgage Lender is willing to transfer the full equity in my name (financial checks done). Does she need a lawyer?
- I am considering remortgaging my property in Winchelsea
does my lawyer need to be on the The Mortgage Lender Solicitor panel. The conveyancing also involves a transfer of equity.
Questions that your conveyancing solicitor could ask about your The Mortgage Lender Transfer of Equity
Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Can you provide the details of anyone who jointly owns the property with you?
Has one of the registered owners passed away? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Please let us know of you wish us to draw up a Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
Who will be responsible for the costs of the Transfer of Equity?
Please provide the details of anyone to be added to the title deeds?
Information to consider in in addition to 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 titles
Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in violation of your covenants under 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 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 conclusion 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 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 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.