Top seven questions relating to Vida Homeloans transfer of equity
- When it comes to transfer of equity conveyancing involving a remortgage with Vida Homeloans should I be invoiced value added tax on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- Last year purchased a flat without my partner's name on the deeds. My conveyancing solicitor claimed it is because she is not in the mortgage with Vida Homeloans. Is it possible for me to add her name on the deeds?
- I am transferring my equity in house in Warwick to my co-owners husband, they are reapplying to Vida Homeloans. We are in heated discussion as to who should pay the charges for the transfer of equity. Is this normally split or is one of us obliged to cover the fees for?
- Have recently split up with my wife of 18 years. I'm now back with my parents again and she wants to remain in the property and buy me out. What percentage do I get. Is it 50% of the equity after paying off the Vida Homeloans home loan? I assume proper valuations are necessary but I would like to be sure that I'm getting what I am entitled to
- I jointly own a flat in Wakefield
, with a Vida Homeloans mortgage with my ex husband. He and his fiance are going to acquire my share. We had approval from Vida Homeloans to remove my name with hers. The transfer of equity has to be completed by a conveyancer for Vida Homeloans (supposedly). Is it possible for us to deal with the Land Registry change?
- Is there such a thing a transfer of equity stamp duty calculator?
- My dad passed away half a year ago leaving a unencumbered property to me and my half brother 50:50. He has always lived in the premises, there was a clause in the will saying the propertycould not be sold for three years after her death so he could remain there for a prescribed period. He now wishes to remain in the premises beyond the specified 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 usual way to buy my equity?
Information that may be required from your lawyer may ask in relation to your Vida Homeloans Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Please provide the name(s) and addresse(s) of anyone to be extracted from the title deeds?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please provide a copy of your National Insurance Number?
Caveats to be read in supplemental the above Vida Homeloans transfer of equity Advice :
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 Vida Homeloans conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not complied with you may be in violation of the lease. This could trigger the freeholder taking enforcement action against you.
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 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 Vida Homeloans 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 Vida Homeloans 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 market value of the property at the conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Vida Homeloans your property may be repossessed.
Preparing the Transfer of Equity with a Vida Homeloans 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 Vida Homeloans 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 provided on 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.