Recently asked questions relating to West Bromwich Mortgage Company transfer of equity

• Is it possible to apply to borrow a further advance from West Bromwich Mortgage Company as part of a Transfer of Equity?
• I am filling out a West Bromwich Mortgage Company transfer of equity request and have arrived at the section regarding defaults etc. I do some debts that I have been paying off since 2007, I understand that they no longer remain my credit records. Must I disclose these?
• What are my options where I am not happy with the conveyancer who carried out our transfer of equity conveyancing?
• West Bromwich Mortgage Company yesterday agreed I can take over the home loan on the house. I had applied for a transfer of equity but is this a transfer of ownership at the Land Registry as well?
• As things stand I have a joint West Bromwich Mortgage Company mortgage with my cousin and am investigating the feasibility of him taking on the outstanding mortgage and removing myself from it, to enable me to purchase somewhere with my fiance. The outstanding mortgage is approx 175k, and the property value is approx 450k. Is this a transfer of equity? Is land tax involved?
• Is it sensible to stop my mortgage payments with West Bromwich Mortgage Company as soon as a date for my remortgage and transfer of equity has been agreed?
• My wife and I equally own a BTL. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity to her sole name with a view to mitigate tax on the letting income. If West Bromwich Mortgage Company are content with this the legal fees are not high. What are the implications when we dispose of the property? Would my GGT relief be lost.

Sample of questions in a conveyancer form concerning a West Bromwich Mortgage Company Transfer of Equity

Important warnings to consider in supporting the above West Bromwich Mortgage Company transfer of equity Advice :

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 West Bromwich Mortgage Company conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is 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 terms are not adhered to you may be in violation 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 pursuant to 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 West Bromwich Mortgage Company 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 West Bromwich Mortgage Company 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 West Bromwich Mortgage Company 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 West Bromwich Mortgage Company 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 conveyancing solicitor 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.