Recently asked questions relating to The Mortgage Works transfer of equity

• I currently have a joint The Mortgage Works mortgage with my cousin and am looking into the option of him taking on the outstanding mortgage and extracting myself from it, so as to enable me to purchase somewhere with my fiance. The remaining mortgage is approx 175k, and the property value is about 450k. Is this a transfer of equity? Is land tax due?
• I am disposing of my equity in apartment in Woodside to the other co-owners fiance, they are reapplying to The Mortgage Works. We are haggling as to who should cover the costs of the transfer of equity. Should this be split or is one of us liable for the charges for?
• I am considering mortgaging my property in Rye does my lawyer need to be on the The Mortgage Works Conveyancing panel. The conveyancing also involves a transfer of equity.
• Am I best advised cancel my mortgage payments with The Mortgage Works once a date for my remortgage and transfer of equity has been agreed?
• Can you tell me how to have a person removed off the deeds to a house where the mortgage is with The Mortgage Works
• I jointly own a property in Heathfield , with a The Mortgage Works loan with my ex partner. He and his new partner are going to buy me out. We had approval from The Mortgage Works to remove my name with hers. The transfer of equity needs to be done by a conveyancer for The Mortgage Works (supposedly). Is it possible for us to do the Land Registry formalities?
• The Mortgage Works have today agreed I can take over the mortgage on the house. I previously applied for a transfer of equity but is this a transfer of ownership at HMLR as well?

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

Important warnings to consider in conjunction with the above The Mortgage Works 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 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 require that you obtain the consent of the freeholder. If such restrictions are not strictly observed 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 pursuant to 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 conveyancer 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 the time of completion of the transfer of equity conveyancing.

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 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.