Top seven questions relating to The Mortgage Lender transfer of equity
- Me and my partner jointly own a house in Dunnington
. Home loan is with The Mortgage Lender. I would like to transfer full ownership to him with no passing of money but without using a lawyer. Is this likely to be simple?
- I already have a home loan with The Mortgage Lender and am maintaining my existing mortgaging but wish to have it in my name alone so my ex won't be on it any longer. How long can it take for the application to be processed?
- What if my application doesn't meet The Mortgage Lender lending criteria for a transfer of equity?
- My ex are looking to get a lawyer lined up for a refinance with The Mortgage Lender. Transfer of Equity conveyancing is also necessaryI have used the different comparison based tools and the results are from all over England and Wales. Do we need to have a conveyancing solicitor local to us?
- My mother died early last year leaving a loan-free semi to me and my brother 50:50. Having continues to reside at the premises, there was a provision in the will specifying that the premisescould not be sold for three years after her death so he could reside there for a specified time frame. He now wishes to remain in the property beyond the specified period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the usual way to acquire my half from me?
- My -ex-husband and I are are seeking to find a responsive conveyancing solicitor to help me sell in a transfer of equity and refinance with The Mortgage Lender. I really don't want to get ripped off and there are lots of conveyancing solicitors who do transfer of equity conveyancing to pick from...who do I opt for?
- Do I need legal representation when doing a transfer of equity where the home loan is to remain with The Mortgage Lender?
Examples of information requested in a lawyer questionnaire concerning a The Mortgage Lender Transfer of Equity
Has consent been obtained from The Mortgage Lender to the proposed transfer of equity?
Please provide the details of anyone to be added to the property title?
Would you like us to draw up a Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
Please provide a copy of your National Insurance Number?
Who will be responsible for the costs of the Transfer of Equity?
If you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
General Advice to read in further to the above The Mortgage Lender transfer of equity Advice :
Tax and Legal
There may be various 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
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 is dependent on the valuation of the property at finalisation 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 conveyancing solicitor 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 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.