Recently asked questions relating to The Mortgage Lender transfer of equity
- I jointly own a flat in Wakefield
, with a The Mortgage Lender loan with my former husband. He and his fiance are going to buy me out. We had approval from The Mortgage Lender to substitute my name with hers. The transfer of equity needs to be completed by a lawyer for The Mortgage Lender (apparently). Is it possible for us to do the Land Registry change?
- My dad passed away seven months ago leaving a unencumbered semi to me and my brother in equal shared. Having continues to reside at the premises, there was a provision in her will saying the premisescould not be sold for three years after her passing so he could continue to live there for a specified time frame. He now wants to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the traditional way to purchase my half from me?
- At what stage do I pay the Stamp Duty Land Tax payable for the transfer of equity in my property in my sole name which is happening simultaneously with a switching mortgage via The Mortgage Lender?
- My The Mortgage Lender mortgage we jointly entered into 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 check my salary?
- I am considering refinancing my flat in Crabtree
does my lawyer need to be on the The Mortgage Lender Conveyancing panel. The conveyancing also involves a transfer of equity.
- I am answering a The Mortgage Lender transfer of equity form and have come to the part that asks about defaults etc. I do some debts that I have been clearing over a long period, in fact they no longer remain my credit rating. Must I disclose these?
- My wife and myself equally own a BTL. I am a top rate tax payer. Preferably I wish to do a transfer of equity to her sole name to reduce our tax on the letting income. If The Mortgage Lender are content with this the legal fees are inexpensive. What are the implications when we sell? Would my GGT relief be lost.
Sample of questions in a conveyancing solicitor form relating to The Mortgage Lender Transfer of Equity
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
Is there to 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 the same
If you are adding someone 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” Questionnaire.
Who will be responsible for the costs of the Transfer of Equity?
Important warnings to consider in in addition to the above The Mortgage Lender transfer of equity Info :
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, the lease may require that you have a license to do so from the freeholder. 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 cases, 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 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information contained within 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.
