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Vida Homeloans

Recently asked questions relating to Vida Homeloans transfer of equity

  • Is it sensible to cancel my mortgage payments with Vida Homeloans once a date for my remortgage and transfer of equity has been agreed?
  • When it comes to transfer of equity conveyancing involving refinance with Vida Homeloans should I be charged VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
  • I understand we would need at least AP1 and TR1. Is this true?
  • I own a flat in Dunnington , with a Vida Homeloans loan with my ex partner. Him and his new partner are going to buy me out. We had approval from Vida Homeloans to remove my name with hers. The transfer of equity needs to be completed by a conveyancer for Vida Homeloans (supposedly). Can we deal with the Land Registry change?
  • My Vida Homeloans mortgage is in joint names with ex, he is agreeable to come off the deeds and let me have the property. Vida Homeloans will permit the transfer of equity to me solely. Will Vida Homeloans write my boss to check my salary?
  • As things stand I have a joint Vida Homeloans mortgage with my cousin and am looking into the possibility of him taking on the outstanding mortgage and removing myself from it, so as to enable me to buy somewhere with my fiance. The remaining mortgage is in the region 175k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty due?
  • Me and a friend got a joint mortgage with Vida Homeloans on a flat in 2013. I am now thinking of purchasing a flat by myself and my friend would like to buy me out. Once we have agreed a figure where do we go? Would there be any potential issue with Vida Homeloans with him being solely liable for the total mortgage as opposed to only part of it?

Examples of information requested in a conveyancer questionnaire relating to Vida Homeloans Transfer of Equity

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

Please list all persons who occupy the property, their respective ages and relationships to you.

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

Has one of the registered owners died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.

Has consent been obtained from Vida Homeloans to the proposed transfer of equity?

Please provide the details of those who jointly own the premises with you?

Caveats to be read in conjunction with the above Vida Homeloans transfer of equity Questions and Answers :

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 properties

If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with 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 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 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 varies based on the valuation of the property at finalisation of the transfer of equity conveyancing.
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 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 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