Common questions relating to Vida Homeloans transfer of equity

• My divorce has gone through as is the consent order. Now I need to sort out the transfer of equity on title deeds and the Vida Homeloans mortgage. I have contacted Vida Homeloans for the transfer of equity application. What do I do now?
• I am disposing of my share of a house in Birmingham to my co-owners fiance, they are sticking with Vida Homeloans as the the existing mortgage company. We are haggling as to who should cover the fees for the transfer of equity. Should this be shared or is one of us liable for the legal bill?
• What are the average legal charges are for a transfer of equity? I'm in the process of remortgaging - new loan with Vida Homeloans - and have been quoted Four Hundred pounds excluding VAT by Vida Homeloans's appointed conveyancer, Is this is a good price or not?
• My partner and I jointly own a property in Romsey . Mortgage is with Vida Homeloans. I would like to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Do you think this should be simple?
• My existing home loan is with Vida Homeloans. Can I transfer equity to someone under 18 years old?
• I purchased a house with my brother six years ago Since then, we have both got married. We are now looking to do a transfer of equity so my name comes off the Vida Homeloans mortgage. There is a 30k difference between the value the lender say and what the property would sell for currently. Can you offer any advice?
• I am hoping to refinance my maisonette in Winchelsea changing from Chelsea BS to Vida Homeloans. The home is jointly owned but propose for it to be in my name only once I switch. My former partner is OK with this and is willing to transfer equity but neither of us want to get a second conveyancing solicitor involved.

Sample of questions in a conveyancer questionnaire concerning a Vida Homeloans Transfer of Equity

Important warnings to consider in supporting the above Vida Homeloans transfer of equity Questions and Answers :

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 titles

If your property is leasehold, 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 strictly observed you may be in violation of the lease. This could trigger 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 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 conveyancing solicitor 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 finalisation 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 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 conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Content 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.