Recently asked questions relating to Vida Homeloans transfer of equity
- How and when do I pay stamp duty chargeable for the transfer of equity in my property in my name alone which is taking place at the same time as a remortgage via Vida Homeloans?
- The financial adviser has recommended their lawyer for our Transfer of Equity plus remortgage with Vida Homeloans - Surely it’s better to just use them?
- As things stand I have a joint Vida Homeloans mortgage with my cousin and am looking into the option of him taking on the outstanding mortgage and removing myself from it, so as to enable me to purchase somewhere with my fiance. The outstanding mortgage is in the region 300k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax due?
- Will I incur any fees for a Transfer of Equity where the existing home loan is with Vida Homeloans?
- My mother died half a year ago leaving a unencumbered property to me and my half brother in equal shared. Having continues to reside at the property, there was a provision in her will saying the propertycould not be sold for 24 months following her death so he could reside there for a while. He now says he would like to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the usual way to acquire my half from me?
- I already have a mortgage with Vida Homeloans and am retaining my current mortgaging but applying to have it in my sole name so my former wife will no longer be on the mortgage. How long do Vida Homeloans take to process the application?
- I am planning on removing a name from a joint mortgage and the Vida Homeloans require me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Romsey
conveyancing solicitor to deal with the transfer of equity? They need to be on the Vida Homeloans conveyancing panel.
Information that may be required from your conveyancing solicitor is likely to ask in relation to your Vida Homeloans Transfer of Equity
Can you provide the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Have you approached Vida Homeloans to obtain consent to the Transfer of Equity
Where you are adding someone 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.
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 give the details of anyone to be extracted from the property title?
Please provide a copy of your National Insurance Number?
Important warnings to consider in supporting 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
If your property is leasehold, provisions in 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 the lease. This could potentially result in 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 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 varies based on the valuation of the property at the time of completion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Vida Homeloans.
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 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 should not be regarded as 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.