Top seven questions relating to The Mortgage Works transfer of equity
- I am under the impression we would need at least AP1 and TR1. Is this true?
- How and when do I incur the Stamp Duty Land Tax payable for the transfer of equity in my house in my sole name which is taking place simultaneously with a refinancing with The Mortgage Works?
- I plan to remortgage my maisonette in Miles Platting
switching from Halifax to The Mortgage Works. The flat is jointly owned but intend for it to be in my sole name once I switch. My former partner is OK with this and is willing to sign a form but neither of us want to get a second lawyer involved.
- I am selling my share of a apartment in Warwick to the other co-owners husband, they are reapplying to The Mortgage Works. We are debating as to who should cover the costs of the transfer of equity. Is this normally split or is one party liable for the costs of?
- My mother died half a year ago leaving a loan-free semi to me and my half brother 50:50. Having continues to reside at the house, there was a clause in the will saying the propertycould not be sold for 2 years after her death so he could continue to live there for a prescribed period. He now wishes to remain in the premises beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the conventional way to purchase my share?
- I own a flat in Ampthill , with a The Mortgage Works loan with my former partner. Him and his new partner are going to acquire my share. We had the go ahead from The Mortgage Works to replace my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for The Mortgage Works (apparently). Can we deal with the Land Registry change?
- Do I need legal representation when doing a transfer of equity where the mortgage is to remain with The Mortgage Works?
Information that may be required from your conveyancing solicitor may ask in relation to your The Mortgage Works Transfer of Equity
Please give the details of anyone to be removed from the title deeds?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Where you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Is the transfer of equity subject to a court order? If yes please supply a copy
Have you approached The Mortgage Works to obtain consent to the Transfer of Equity
Has one of the registered proprietors died? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Caveats to be read in in addition to the above The Mortgage Works transfer of equity information :
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 premises
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in violation of the lease. This could trigger 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 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 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 time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with The Mortgage Works.
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 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 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.
