Common questions relating to Vida Homeloans transfer of equity

• I am transferring my share of a house in Birmingham to the other co-owners fiance, they are sticking with Vida Homeloans as the the existing mortgage company. We are in heated discussion as to who should cover the costs of the transfer of equity. Should this be shared or is one of us obliged to cover the fees for?
• I plan to refinance my maisonette in Witham changing from Leeds Building Society to Vida Homeloans. The maisonette is jointly owned but intend for it to be in my name only once I switch. My wife has verbally consented to this and is happy to sign a form but neither of us want to get a second lawyer involved.
• My partner and I have equal shares in a investment property. I am a top rate tax payer. Preferably I would like to do a transfer of equity into her name in order mitigate tax on rental income. If Vida Homeloans are content with this the legal fees are not prohibitive. What are the implications when we sell? Would my GGT relief be lost.
• What if my application doesn't meet Vida Homeloans lending criteria for a transfer of equity?
• I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
• I am are seeking to find a responsive conveyancing solicitor to help me sell in a transfer of equity and refinance with Vida Homeloans. I am aware of the chance of getting ripped off and there's many conveyancing solicitors who do transfer of equity conveyancing out there...who's the best?
• Vida Homeloans yesterday agreed I can take over the mortgage on the house. I previously applied for a transfer of equity but presumably there is a transfer of ownership at HMLR as well?

Information that may be required from your conveyancer may ask in relation to your Vida Homeloans Transfer of Equity

Information to consider in in addition to the above Vida Homeloans 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 Vida Homeloans conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in violation of your covenants under the lease. This could trigger 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 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 conveyancing.

Preparing the Transfer of Equity with a Vida Homeloans 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 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 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.