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The Mortgage Lender transfer of equity example support desk enquires

  • I jointly own a apartment in Sedgefield , with a The Mortgage Lender mortgage with my former husband. He and his new partner are going to buy me out. We had consent from The Mortgage Lender to remove my name with hers. The transfer of equity has to be done by a lawyer for The Mortgage Lender (supposedly). In order to save fees can I deal with the Land Registry change?
  • After 5 years estranged I have decided to transfer my share of our flat to my husband who is refinancing with The Mortgage Lender. Can a transfer of equity be done in less than four weeks?
  • When it comes to transfer of equity conveyancing involving a remortgage with The Mortgage Lender should I be paying value added tax 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 am transferring my share of a apartment in Warwick to the other co-owners fiance, they are sticking with The Mortgage Lender as the the existing mortgage company. We are haggling as to who must cover the legal bill for the transfer of equity. Is this normally split or is one of us liable for the costs of?
  • As things stand I have a joint The Mortgage Lender mortgage with my brother and am investigating the option of him taking on the outstanding mortgage and subtracting myself from it, so as to enable me to purchase a place with my soon-to-be-wife. The outstanding mortgage is approx 250k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax payable?
  • I am am in need of a conveyancer to handle my transfer of equity. The Mortgage Lender are dealing with the refinancing. I considered asking my financial adviser. I am lead to believe he may receive a referral fee for recommending someone, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Is my logic correct?
  • Am I best advised cancel the direct debit for my mortgage with The Mortgage Lender once a date for my remortgage and transfer of equity has been set?

Questions that your conveyancing solicitor may ask about your The Mortgage Lender Transfer of Equity

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?

Please provide a copy of your National Insurance Number?

Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?

Will there be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what amounts

Please give the name(s) and addresse(s) of those who jointly own the premises with you?

Where you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Important warnings 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

If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with you may be in breach of the lease. This could potentially result in 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 is dependent on the valuation 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 conveyancer 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.

Content 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