Top seven questions relating to The Mortgage Works transfer of equity

• I understand we would need at least AP1 and TR1. Is this true?
• In 2009 I purchased a apartment without my partner's name on the deeds. My conveyancer claimed it is because she is not in the mortgage with The Mortgage Works. I'm wondering is there any way that I can add her name on the title?
• I am looking for a conveyancer to handle my transfer of equity. The Mortgage Works are dealing with the refinancing. I considered asking my financial adviser. I understand he will likely get a kickback for recommending a firm, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Any flaws you see in this way of thinking?
• I am in the process of removing a name from a joint mortgage and the The Mortgage Works require me to use a conveyancer to carry out the conveyancing. Can you recommend a reasonably priced Heathfield conveyancing solicitor to deal with the transfer of equity? They need to be on the The Mortgage Works conveyancing panel.
• I purchased a flat with my brother six years ago Since then, we have both got married. We are now seeking to do a transfer of equity so my name is removed the The Mortgage Works mortgage. There is a meaningful difference between the value the bank say and what the property would sell for currently. Can you offer any advice?
• I currently have a joint The Mortgage Works mortgage with my step-brother and am investigating the possibility of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to buy a property with my fiance. The outstanding mortgage is about 200k, and the property value is in the region 500k. Is this a transfer of equity? Is stamp duty due?
• Given that we have been 4 years estranged I have made the decision to relinquish up my share of the house to my husband who is re-mortgaging with The Mortgage Works. Can a transfer of equity be completed in four weeks?

Information that may be required from your conveyancing solicitor is likely to ask in relation to your The Mortgage Works Transfer of Equity

Important warnings to consider in in addition to the above The Mortgage Works transfer of equity Advice :

Tax and Legal

There may be various 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, provisions in the lease may require that you have a license to do so from the landlord. 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.

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 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 varies based on the market value of the property at finalisation 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 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 conveyancer 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.