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The Mortgage Works

Top seven questions relating to The Mortgage Works transfer of equity

  • My brother and I got a joint mortgage with The Mortgage Works on a flat a couple of years ago. I am now thinking of purchasing a property on my own and my friend would like to buy me out. Assuming we can agree an amount what are the next steps? Is there likely to be any concerns with The Mortgage Works with him being on the hook for the total mortgage as opposed to only half of it?
  • Law month I separated from my partner of twenty years. I'm now back with my mum and dad and she wishes to stay in the property and buy me out. What percentage am I entitled to. Is it half of the equity after paying off the mortgage with The Mortgage Works? I assume proper valuations are required but I really need to be confident that I'm getting the best deal
  • I jointly own a apartment in Miles Platting , with a The Mortgage Works mortgage with my former partner. Him and his new partner are going to acquire my share. We had consent from The Mortgage Works to replace my name with hers. The transfer of equity has to be completed by a conveyancer for The Mortgage Works (apparently). Can we deal with the Land Registry formalities?
  • Is stamp duty payable when it comes to an transfer of equity with a mortgage with The Mortgage Works?
  • I bought a house with my brother in 2009 Since then, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the The Mortgage Works mortgage. There is a 40k difference between the value the The Mortgage Works hold and what the property would sell for currently. Can you offer any advice?
  • How do I go about adding or removing names (transfer of equity) to or from my The Mortgage Works mortgage account?
  • My wife and myself jointly own a investment property. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity into her name in order reduce our tax on the letting income. Assuming The Mortgage Works are fine with this the legal fees are inexpensive. However what happens when we sell? Would my GGT relief be lost.

Examples of questions in a conveyancing solicitor questionnaire concerning a The Mortgage Works Transfer of Equity

Has consent been obtained from The Mortgage Works to the proposed transfer of equity?

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?

Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?

Has one of the registered owners died? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..

Where 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.

Please provide the details of anyone to be added to the title deeds?

Important warnings to consider in supporting the above The Mortgage Works 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 Works 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 conditions are not complied with you may be in violation 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 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 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 valuation of the property at finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with The Mortgage Works your property may be repossessed.

Preparing the Transfer of Equity with a The Mortgage Works Mortgage

When it comes to preparing the the Land Registry documents your conveyancer 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 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.


Frequently asked questions relating to The Mortgage Works transfer of equity