Vida Homeloans transfer of equity: q and a’s

• What is the process for adding or subtracting names (transfer of equity) to or from my Vida Homeloans mortgage account?
• Is it possible to transfer the equity held in my property with my Vida Homeloans mortgage?
• My decree absolute has gone through as is the consent order. Now I need to address the transfer of equity for the property and the Vida Homeloans mortgage. I have called Vida Homeloans for the transfer of equity application. What do I do now?
• Last year purchased a property without my wife's name on the title documents. My conveyancing solicitor said it is because she is not in the mortgage with Vida Homeloans. Is it possible for me to put her name on the documents at HM Land Registry?
• I am completing a Vida Homeloans transfer of equity application and have arrived at the part concerning defaults etc. I do some debts that I have been clearing for a number of years, in fact they have long since disappeared from my credit score. Must I set these out?
• Is it sensible to cancel the direct debit for my mortgage with Vida Homeloans once a date for my remortgage and transfer of equity has been agreed?
• My Vida Homeloans mortgage we jointly entered into with ex, he is agreeable to be removed and let me have the property. Vida Homeloans have consented to the transfer of equity to my individual name. Will Vida Homeloans write my employer to check my salary?

Examples of questions in a lawyer form concerning a Vida Homeloans Transfer of Equity

General Advice to read in conjunction with 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 premises

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such restrictions are not strictly observed you may be in breach 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 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 is dependent on the market value of the property at the conclusion of the transfer of equity transaction.

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 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.