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Are you in need of a Transfer of Equity with a The Mortgage Works mortgage? Failing to check that a lawyer is on the The Mortgage Works list of approved solicitors can put your transfer at risk of delay or failure. Only LenderPanel.com provides a subset of authorised conveyancers for over 130 lenders.

The Mortgage Works transfer of equity: q and a’s

  • What is the process for adding or removing names (transfer of equity) to or from my The Mortgage Works mortgage account?
  • The mortgage broker has recommended their lawyer for the Transfer of Equity plus remortgage with The Mortgage Works - won’t it be better to just instruct them?
  • Law month I separated from my wife of thirty years. I'm now living with my mum and dad and she wishes to remain in the property and buy me out. What portion am I entitled to. Is it half of the equity after paying off the mortgage with The Mortgage Works? I assume proper valuations are necessary but I would like to be sure that I'm getting what I am entitled to
  • I am filling out a The Mortgage Works transfer of equity application and have arrived at the questions regarding defaults etc. There are some debts that I have been paying off for a number of years, in fact they have long since disappeared from my credit records. Am I obliged to set these out?
  • I intend to remortgage my apartment in Littleborough changing from RBS to The Mortgage Works. The flat is jointly owned but propose for it to be in my name only as and when I switch. My former partner is OK with this and is willing to transfer equity but neither of us want to incur conveyancer fees.
  • My divorce has gone through as is the consent order. Now I need to deal with the transfer of equity for the property and the The Mortgage Works mortgage. I have called The Mortgage Works for the transfer of equity forms. What do I do now?
  • Will I incur any charges for a Transfer of Equity where the existing mortgage is with The Mortgage Works?

Information that may be required from your conveyancing solicitor is likely to ask in relation to your The Mortgage Works Transfer of Equity

Please provide a copy of your National Insurance Number?

Can you provide the name(s) and addresse(s) of anyone who jointly owns the property with you?

Please confirm where you are providing any payment for the Transfer of Equity and to whom and disclose any such sums?

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

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

Have you approached The Mortgage Works to obtain consent to the Transfer of Equity

Important warnings to consider in further to the above The Mortgage Works transfer of equity information :

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 Works conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

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 freeholder. If such conditions are not complied with you may be in breach of your covenants under 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 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 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 varies based on the market value of the property at the time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with The Mortgage Works.

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 lawyer 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 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.


Frequently asked questions relating to The Mortgage Works transfer of equity