Sample questions relating to Vida Homeloans transfer of equity
- I am disposing of my equity in flat in Hendon to the other co-owners husband, they are sticking with Vida Homeloans being the the existing mortgage company. We are debating as to who should cover the charges for the transfer of equity. Is this normally split or is one of us liable for the charges for?
- Am I best advised stop my mortgage payments with Vida Homeloans once a date for my remortgage and transfer of equity has been set?
- Law month I split up with my wife of thirty years. I'm now living with my mum and dad and she wishes to remain in the apartment and pay me off. What portion am I entitled to. Is it 50% of the equity after redeeming the Vida Homeloans home loan? I assume proper valuations are required but I would like ensure that I'm getting I am not being taken advantage of
- My Vida Homeloans home loan is in joint names with ex, who is agreeable to be removed and let me have the property. Vida Homeloans have consented to the transfer of equity to me solely. Will Vida Homeloans write my employer to verify my salary?
- I got divorced in 2010. For some reason I never dealt with the change the ownership from the current 'joint' status to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Vida Homeloans is content to transfer the property and loan in my name (financial checks done). Does my ex need any legal representation?
- Is it possible to apply to borrow a further advance from Vida Homeloans as part of a Transfer of Equity?
- My friend and I got a joint mortgage with Vida Homeloans on a house a couple of years ago. I am now thinking of purchasing a house by myself and my friend would like to buy me out. Assuming we can agree an amount what are the next steps? Is there likely to be any concerns with Vida Homeloans with him being solely liable for the total loan as opposed to only half of it?
Sample of information requested in a lawyer questionnaire relating to Vida Homeloans Transfer of Equity
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?
Would you like us to draw up a Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
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 give the name(s) and addresse(s) of anyone to be added to 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 title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Caveats to be read in supplemental the above Vida Homeloans transfer of equity Info :
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 premises
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to 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 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 valuation 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 conveyancing solicitor 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.