Top seven questions relating to The Mortgage Works transfer of equity
- Our financial adviser has recommended their lawyer for my Transfer of Equity plus remortgage with The Mortgage Works - Surely it’s better to just use them?
- At what stage do I incur the Stamp Duty Land Tax due for the transfer of equity in my home in my name alone which is happening simultaneously with a remortgage with The Mortgage Works?
- My friend and I got a joint mortgage with The Mortgage Works on a house a couple of years ago. I am now thinking of purchasing a house on my own and my friend would like to buy me out. Once we have agreed a price what happens next? Would there be any potential problem with The Mortgage Works with him being solely liable for the total mortgage rather than only part of it?
- My -ex-husband and I are searching for an affordable conveyancing lawyer to help me sell in a transfer of equity and remortgage with The Mortgage Works. I I am concerned about appointing the wrong one and there are lots of conveyancing practices who do transfer of equity conveyancing out there...who's the best?
- I own a property in Miles Platting
, with a The Mortgage Works loan with my ex husband. He and his fiance are going to buy me out. We had the go ahead from The Mortgage Works to replace my name with hers. The transfer of equity needs to be done by a conveyancer for The Mortgage Works (supposedly). Is it possible for us to deal with the Land Registry change?
- Having been 4 years apart I have made the decision to give up my interest in the house to my husband who is re-mortgaging with The Mortgage Works. Can a transfer of equity be completed in less than four weeks?
- My partner and I co-own a property in Witham
. Home loan is with The Mortgage Works. I would like to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Is this likely to be straightforward?
Sample of information requested in a lawyer form concerning a The Mortgage Works Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be removed from the property title?
Who will be responsible for the costs of the Transfer of Equity?
Is it the case that one of the registered proprietors died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Have you approached The Mortgage Works to obtain consent to the Transfer of Equity
General Advice to read in supporting 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
If your property is leasehold, provisions in 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.
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 conveyancer 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 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 contained within 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.