The Mortgage Works transfer of equity example support desk enquires
- Been reviewing consumer forums that solicitors are more expensive than conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor if I am transferring equity and simultaneously remortgaging with The Mortgage Works
- When it comes to transfer of equity conveyancing involving a remortgage with The Mortgage Works should I be charged value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- Our financial adviser has recommended their lawyer for our Transfer of Equity plus remortgage with The Mortgage Works - Surely it’s advisable to just use them?
- Having been 4 years apart I have made the decision to relinquish up my interest in the property to my husband who is refinancing with The Mortgage Works. Can a transfer of equity be completed in four weeks?
- I already have a home loan with The Mortgage Works and am keeping my current mortgaging but seeking to have it in my name only so my former wife will be removed from the mortgage. How long does the whole transfer of equity process take?
- Me and my partner jointly own a house in Romsey
. Home loan is with The Mortgage Works. I want to transfer full ownership to him with no passing of money but without using a conveyancer. Is this likely to be simple?
- I got divorced four years ago. I simply never got around to change the ownership from both our names to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. The Mortgage Works is willing to transfer the full equity in my name (financial checks done). Does she need a lawyer?
Information that may be required from your conveyancer could ask regarding your The Mortgage Works Transfer of Equity
Please let us know where you are making any payment for the Transfer of Equity and to whom and notify us any such sums?
Who will be responsible for the costs of the Transfer of Equity?
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” Questionnaire.
Please provide the details of anyone to be added to the property title?
Please give the details of those who jointly own the property with you?
Please provide the name(s) and addresse(s) of anyone to be extracted from the property title?
Information to consider in further to 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 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 breach of the lease. This could trigger 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 lawyer 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 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 conveyancing solicitor 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.
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.
