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Frequently asked questions relating to The Mortgage Lender transfer of equity

  • Is it possible to transfer the equity held in my property with my The Mortgage Lender mortgage?
  • Taking into account that we have been three years estranged I have opted to give up my interest in our former home to my husband who is re-mortgaging with The Mortgage Lender. Can a transfer of equity be completed inside one month?
  • What is the process for adding or removing names (transfer of equity) to or from my The Mortgage Lender mortgage account?
  • Me and my former husband and I are searching for an affordable conveyancing solicitor to assist in a transfer of equity and refinance with The Mortgage Lender. I am aware of the risk of getting ripped off and there are various conveyancing organisations who do transfer of equity conveyancing out there...who's the best?
  • My mum died half a year ago leaving a unencumbered bungalow to me and my half brother in equal shared. He has always lived in the property, there was a condition in the will saying the propertycould not be sold for three years following her death so he could continue to live there for a while. He now wishes to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the usual way to acquire my equity?
  • My decree absolute is through as is the consent order. Now I must address the transfer of equity for the property and the The Mortgage Lender mortgage. I have contacted The Mortgage Lender for the transfer of equity application. What happens next?
  • I acquired a property with my brother in 2008 Since then, we have both got married. We are now looking to do a transfer of equity so my name comes off the The Mortgage Lender mortgage. There is a 40k difference between the value the mortgage company say and what the property would sell for currently. Can you offer any advice?

Sample of information requested in a lawyer questionnaire relating to The Mortgage Lender Transfer of Equity

If you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Have you approached The Mortgage Lender to obtain consent to the Transfer of Equity

Please confirm if you are making any payment for the Transfer of Equity and to whom and specify any such sums?

Has one of the registered proprietors died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.

Would you like us to draft you Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?

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

Information to consider in conjunction with the above The Mortgage Lender transfer of equity information :

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 have a requirement for notices to be served and that you have a license to do so from the landlord. If such terms are not adhered to you may be in breach of your covenants under the lease. This could trigger 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 valuation 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 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 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