Examples of recent questions relating to The Mortgage Works transfer of equity
- I plan to remortgage my apartment in Crabtree
changing from Accord to The Mortgage Works. The flat is currently in joint names but propose for it to be in my name only once I switch. My wife is OK with this and is willing to sign a form but neither of us want to incur conveyancer charges.
- My The Mortgage Works home loan is in joint names with ex, who is agreeable to come off the mortgage and let me have the property. The Mortgage Works will permit the transfer of equity to my individual name. Will The Mortgage Works contact my boss to check my salary?
- Me and my partner jointly own a flat in Littleborough
. Home loan is with The Mortgage Works. I wish to transfer full ownership to him with no passing of money but without using a lawyer. Do you think this should be easy to so?
- What do I do if I am not happy with the lawyer who conducted our transfer of equity conveyancing?
- My divorce has gone through as is the consent order. Now I must sort out the transfer of equity at the HMLR and the The Mortgage Works home loan. I have contacted The Mortgage Works for the transfer of equity application. What happens next?
- I got my Decree Absolute three years ago. Foolishly I never got around to change the ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. The Mortgage Works is content to transfer the full equity in my name (financial checks done). Does she need a lawyer?
- My financial adviser has suggested using their lawyer for our Transfer of Equity plus remortgage with The Mortgage Works - Surely it’s easier to just instruct them?
Questions that your lawyer is likely to ask in relation to your The Mortgage Works Transfer of Equity
Please list all persons who occupy the property, their respective ages and relationships to you.
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Would you like us to draft you Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Please provide the details of anyone to be added to the title deeds?
Has consent been obtained from The Mortgage Works to the proposed transfer of equity?
Who will be responsible for the costs of the Transfer of Equity?
Information to consider in supplemental the above The Mortgage Works transfer of equity information :
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 have a license to do so from the freeholder. If such terms are not adhered to you may be in breach of 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 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 finalisation 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 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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information provided 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.