Questions and answers: Together Personal Finance transfer of equity

• Been looking at consumer forums 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 Together Personal Finance
• I already have a mortgage with Together Personal Finance and am keeping my existing mortgaging but wish to have it in my name alone so my former partner won't be on it any longer. How long does the whole transfer of equity process take?
• My Together Personal Finance home loan we jointly entered into with ex, he is agreeable to be removed and let me have the property. Together Personal Finance have consented to the transfer of equity to me solely. Will Together Personal Finance contact my company to confirm my salary?
• I am answering a Together Personal Finance transfer of equity form and have arrived at the questions that asks about defaults etc. I do some debts that I have been clearing for a number of years, I understand that they no longer remain my credit score. Do I need to reveal these?
• What if my application doesn't meet Together Personal Finance lending criteria for a transfer of equity?
• I currently have a joint Together Personal Finance mortgage with my step-brother and am investigating the feasibility of him taking on the outstanding mortgage and subtracting myself from it, to enable me to purchase a property with my fiance. The outstanding mortgage is about 200k, and the property value is approx 500k. Is this a transfer of equity? Is land tax involved?
• I am in the process of removing a name from a joint mortgage and the Together Personal Finance need me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Heathfield conveyancer to deal with the transfer of equity? They need to be on the Together Personal Finance conveyancing panel.

Information that may be required from your conveyancer may ask in relation to your Together Personal Finance Transfer of Equity

Important warnings to consider in in addition to the above Together Personal Finance 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 Together Personal Finance conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed 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 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 Together Personal Finance 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 Together Personal Finance 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 transaction.

Preparing the Transfer of Equity with a Together Personal Finance 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 Together Personal Finance 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 conveyancing solicitor 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.