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The Mortgage Works

Common questions relating to The Mortgage Works transfer of equity

  • I am selling my equity in apartment in Birmingham to my co-owners fiance, they are sticking with The Mortgage Works as the the existing mortgage company. We are in heated discussion as to who should cover the charges for the transfer of equity. Should this be shared or is one party liable for the legal bill?
  • I already have a home loan with The Mortgage Works and am retaining my current mortgaging but wish to have it in my sole name so my ex will come off the mortgage. How long can it take for the forms to be processed?
  • What if my application doesn't meet The Mortgage Works lending criteria for a transfer of equity?
  • Is it sensible to stop my mortgage payments with The Mortgage Works as soon as a date for my remortgage and transfer of equity has been agreed?
  • I own a flat in Sedgefield , with a The Mortgage Works mortgage with my former partner. He and his fiance are going to buy me out. We had approval from The Mortgage Works to replace my name with hers. The transfer of equity has to be done by a conveyancer for The Mortgage Works (supposedly). Is it possible for us to deal with the Land Registry formalities?
  • Last year purchased a property without my wife's name on the title. My conveyancer said it is due to the fact that she is not in the mortgage with The Mortgage Works. Is it possible for me to put her name on the deeds?
  • Me and my former partner and I are are looking to find a responsive conveyancing solicitor to assist in a transfer of equity and refinance with The Mortgage Works. I I am concerned about being overcharged and there are various conveyancing solicitors who do transfer of equity conveyancing to pick from...how do I know which to select?

Sample of questions in a conveyancing solicitor questionnaire relating to The Mortgage Works Transfer of Equity

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

Please provide the details of anyone to be removed from the title deeds?

Will there be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same

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

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?

Caveats to be read in further to the above The Mortgage Works transfer of equity Info :

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 landlord. 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 as a result of 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 the conclusion 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 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 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