The Mortgage Lender transfer of equity: q and a’s

• I am refinancing my property in Timperley does my lawyer have to be on the The Mortgage Lender Conveyancing panel. The conveyancing also involves a transfer of equity.
• My dad passed away early last year leaving a loan-free house to me and my step brother equally. Having continues to reside at the house, there was a provision in the will saying the housecould not be sold for three years after her passing so he could continue to live there for a prescribed period. He now says he would like to remain in the property beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the conventional way to purchase my share?
• I got divorced in 2011. I simply never dealt with the transfer ownership from both our names to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. The Mortgage Lender is willing to transfer the property and loan in my name (affordability checks done). Does she need a conveyancer?
• I purchased a property with my cousin five.seven years ago Since purchasing the property, we have both got married. We are now looking to do a transfer of equity so my name is removed the The Mortgage Lender mortgage. There is a 40k difference between the value the lender say and what the property would sell for currently. Can you offer any advice?
• What are the average conveyancing fees are for a transfer of equity? I'm in the process of remortgaging - moving over to The Mortgage Lender - and have been quoted Four Hundred pounds plus VAT by The Mortgage Lender's appointed conveyancing solicitor, Have I been over quoted?
• I already have a mortgage with The Mortgage Lender and am maintaining my existing mortgaging but applying to have it in my name only so my ex will come off the mortgage. How long do The Mortgage Lender take to deal with the application?
• Law week I split up with my ex of 18 years. I'm now back with my mum and dad and she wishes to stay in the flat and buy me out. What portion do I get. Is it half of the equity after paying off the The Mortgage Lender home loan? I assume proper valuations are necessary but I really need ensure that I'm getting what I am entitled to

Examples of information requested in a conveyancing solicitor questionnaire relating to The Mortgage Lender Transfer of Equity

Information to consider in supplemental 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 properties

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in violation 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 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 varies based on the valuation of the property at finalisation of the transfer of equity conveyancing.

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 conveyancing solicitor 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.