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Vida Homeloans

Top seven questions relating to Vida Homeloans transfer of equity

  • I purchased a house with my cousin in 2010 Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name comes off the Vida Homeloans mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
  • I currently have a joint Vida Homeloans mortgage with my brother and am investigating the possibility of him taking on the outstanding mortgage and subtracting myself from it, so as to enable me to purchase somewhere with my fiance. The remaining mortgage is in the region 175k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax payable?
  • I am answering a Vida Homeloans transfer of equity application and have come to the questions that asks about defaults etc. I do some debts that I have been reducing since 2008, in fact they have long since disappeared from my credit score. Am I obliged to set these out?
  • My Vida Homeloans mortgage we jointly entered into with ex, who is agreeable to be removed and put the house in my name alone. Vida Homeloans have consented to the transfer of equity to me solely. Will Vida Homeloans write my employer to verify my salary?
  • What is the process for adding or subtracting names (transfer of equity) to or from my Vida Homeloans mortgage account?
  • Will I incur any charges for a Transfer of Equity where the current home loan is with Vida Homeloans?
  • Have recently separated from my ex of 18 years. I'm now back with my mum and dad and she wants to remain in the property and pay me off. What portion do I get. Is it half of the equity after discharging the mortgage with Vida Homeloans? I assume proper valuations are necessary but I really need to be sure that I'm getting what I am entitled to

Information that may be required from your conveyancing solicitor could ask regarding your Vida Homeloans Transfer of Equity

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

Please inform us if you are providing any payment for the Transfer of Equity and to whom and notify us any such sums?

Please let us know of you wish us to draft you Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?

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?

Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?

Is the transfer of equity subject to a court order? If yes please supply a copy

Caveats to be read in conjunction with the above Vida Homeloans 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 Vida Homeloans conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in breach of your covenants under the lease. This could potentially result in 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 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 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.


Frequently asked questions relating to Vida Homeloans transfer of equity