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The Mortgage Works

Examples of recent questions relating to The Mortgage Works transfer of equity

  • I am filling out a The Mortgage Works transfer of equity request and have come to the questions regarding defaults etc. I do some debts that I have been reducing since 2007, I understand that they no longer remain my credit rating. Must I set these out?
  • My wife and myself have equal shares in a buy to let. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity to her sole name in order reduce our tax on the letting income. If The Mortgage Works are content with this the legal fees are inexpensive. However what happens when we dispose of the property? Would my GGT relief be lost.
  • My existing home loan is with The Mortgage Works. Can I transfer equity to someone less than eighteen years old?
  • Me and a friend got a joint mortgage with The Mortgage Works on a property about a year ago. I am now looking to get a flat by myself and my friend would like to buy me out. On the basis that we can settle on a price what happens next? Is there likely to be any problem with The Mortgage Works with him being on the hook for the total loan as opposed to only half of it?
  • I recently purchased a apartment without my fiance’s name on the deeds. My conveyancer claimed it is due to the fact that she was not in the mortgage with The Mortgage Works. I'm wondering is there any way that I can add her name on the title?
  • Online research suggests that solicitors are more expensive than licensed conveyancers when it comes to 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
  • Have recently separated from my partner of twenty years. I'm now living with my mum and dad and she wants to stay in the flat and pay me off. What portion do I get. Is it half of the equity after discharging the mortgage with The Mortgage Works? I assume proper valuations are required but I would like to be sure that I'm getting what I am entitled to

Examples of information requested in a conveyancing solicitor questionnaire concerning a The Mortgage Works Transfer of Equity

Please provide the details of anyone to be extracted from the property title?

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Can you give the details of anyone who jointly owns the premises with you?

If 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?

Please confirm where you are making any payment for the Transfer of Equity and to whom and give details of the amount?

Information to consider in further to the above The Mortgage Works transfer of equity Questions and Answers :

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

If your property is leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not complied with 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 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 market value 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 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 conveyancer 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.


Frequently asked questions relating to The Mortgage Works transfer of equity