The Mortgage Works transfer of equity: q and a’s
- I am trying to find a lawyer to handle my transfer of equity. The Mortgage Works have been approached for a remortgage. I thought of asking my financial adviser. I understand he will likely get a referral fee for recommending a firm, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Any flaws you see in this way of thinking?
- I purchased a house with my brother in 2008 Since purchasing the property, we have both got married. We are now looking to do a transfer of equity so my name is removed the The Mortgage Works mortgage. There is a 30k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- I am in the process of removing a name from a joint mortgage and the The Mortgage Works need me to use a lawyer to carry out the paperwork. Can you recommend a reasonably priced Timperley
conveyancing solicitor to deal with the transfer of equity? They need to be on the The Mortgage Works conveyancing panel.
- What should I be budgeting for when it comes to what legal charges are for a transfer of equity? I need to transfer equity and remortgage - new loan with The Mortgage Works - and have been quoted £350 excluding VAT by The Mortgage Works's approved conveyancer, Have I been over quoted?
- Can you tell me how to have a person removed off the deeds to a house if the home loan is with The Mortgage Works
- I am thinking of remortgaging my home in Blaenavon
does my lawyer have to be on the The Mortgage Works Solicitor panel. The conveyancing also involves a transfer of equity.
- Is there such a thing a transfer of equity stamp duty calculator?
Examples of information requested in a conveyancer form concerning a The Mortgage Works Transfer of Equity
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Please give the details of anyone who jointly owns the premises with you?
Please provide the name(s) and addresse(s) of anyone to be extracted from the property title?
Please clarify if you are providing any payment for the Transfer of Equity and to whom and give details of the amount?
Who will be responsible for the costs of the Transfer of Equity?
General Advice to read 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 premises
If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.
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 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 valuation of the property at finalisation of the transfer of equity conveyancing.
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 conveyancing solicitor 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.