Recently asked questions relating to The Mortgage Works transfer of equity

• Having been four years estranged I have opted to give up my share of our apartment to my husband who is refinancing with The Mortgage Works. Could this transfer of equity be done within four weeks?
• I am disposing of my share of a apartment in Woodside to my co-owners fiance, they are sticking with The Mortgage Works being the the existing lender. We are haggling as to who must pay the legal bill for the transfer of equity. Is this usually shared or is one party obliged to cover the legal bill?
• What do I do if I am unhappy with the lawyer who undertook my transfer of equity conveyancing?
• When it comes to transfer of equity conveyancing involving refinance with The Mortgage Works should I be paying value added tax on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
• Me and a friend got a joint mortgage with The Mortgage Works on a house in 2013. I am now thinking of purchasing a flat on my own and my friend would like to buy me out. Once we have agreed a price what are the next steps? Would there be any potential problem with The Mortgage Works with him being solely liable for the total loan as opposed to only half of it?
• My partner and I co-own a house in Miles Platting . Mortgage is with The Mortgage Works. I would like to transfer full ownership to him with no passing of money but without using a conveyancer. Is this likely to be straightforward?
• How much the typical legal charges are for a transfer of equity? I'm in the process of remortgaging - new loan with The Mortgage Works - and have been quoted £350 including VAT by The Mortgage Works's appointed lawyer, Is this a reasonable price?

Questions that your lawyer could ask about your The Mortgage Works Transfer of Equity

Important warnings to consider in in addition to the above The Mortgage Works 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 Works 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 have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to 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 Works 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 Works 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 market value of the property at finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a The Mortgage Works 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 Works 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.

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.