The Mortgage Lender transfer of equity example support desk enquires
- I already have a mortgage with The Mortgage Lender and am maintaining my existing mortgaging but seeking to have it in my name alone so my former husband won't be on it any longer. How long do The Mortgage Lender take to deal with the application?
- My brother and I got a joint mortgage with The Mortgage Lender on a apartment a couple of years ago. I am now looking to get a flat by myself and my friend would like to buy me out. On the basis that we can settle on a price what are the next steps? Would there be any potential issue with The Mortgage Lender with him being responsible for the total mortgage as opposed to only part of it?
- My The Mortgage Lender mortgage we jointly entered into with ex, who has agreed to be removed and put the house in my name alone. The Mortgage Lender have consented to the transfer of equity to my individual name. Do The Mortgage Lender write my boss to verify my salary?
- My mum died seven months ago leaving a unencumbered semi to me and my half brother in equal shared. He has always lived in the premises, there was a provision in her will saying the housecould not be sold for 2 years following her death so he could remain there for a while. He now says he would like to remain in the property beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the conventional way to buy my equity?
- My partner and myself jointly own a investment property. I am a top rate tax payer. Preferably I would like to do a transfer of equity into her name with a view to reduce our tax on rental income. Assuming The Mortgage Lender are happy with this the legal fees are not high. What are the implications when we dispose of the property? Would my GGT relief be lost.
- My current mortgage is with The Mortgage Lender. Can I transfer equity to someone under 18 years old?
- I am in the process of refinancing my apartment in Romsey
does my lawyer need to be on the The Mortgage Lender Conveyancing panel. The conveyancing also involves a transfer of equity.
Examples of information requested in a lawyer form relating to The Mortgage Lender Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Have you approached The Mortgage Lender to obtain consent to the Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Will there be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Important warnings to consider in supplemental the above The Mortgage Lender transfer of equity Advice :
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 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.
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 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 conveyancer 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.