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West Bromwich Mortgage Company

Questions and answers: West Bromwich Mortgage Company transfer of equity

  • Is stamp duty payable when it comes to an transfer of equity with a mortgage with West Bromwich Mortgage Company?
  • Is it sensible to cancel the direct debit for my mortgage with West Bromwich Mortgage Company once a date for my remortgage and transfer of equity has been agreed?
  • Me and a friend got a joint mortgage with West Bromwich Mortgage Company on a property a couple of years ago. I am now looking to get a flat on my own and my friend would like to buy me out. On the basis that we can settle on an amount what happens next? Is there likely to be any issue with West Bromwich Mortgage Company with him being solely liable for the total mortgage as opposed to only part of it?
  • I jointly own a property in Winchelsea , with a West Bromwich Mortgage Company mortgage with my ex husband. Him and his fiance are going to buy me out. We had the go ahead from West Bromwich Mortgage Company to remove my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for West Bromwich Mortgage Company (apparently). In order to save fees can I do the Land Registry change?
  • Is it possible to apply to request more money from West Bromwich Mortgage Company as part of a Transfer of Equity?
  • My ex-partner and I are in the market for an affordable conveyancing lawyer to assist in a transfer of equity and remortgage with West Bromwich Mortgage Company. I I am concerned about appointing the wrong one but with plenty conveyancing practices who do transfer of equity conveyancing out there...who do I opt for?
  • I am completing a West Bromwich Mortgage Company transfer of equity form and have come to the questions concerning defaults etc. There are some debts that I have been paying off for a number of years, I understand that they no longer remain my credit rating. Am I obliged to set these out?

Questions that your lawyer is likely to ask about your West Bromwich Mortgage Company Transfer of Equity

Who will be responsible for the costs of the Transfer of Equity?

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the 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 let us know of you wish us to prepare Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?

Have you approached West Bromwich Mortgage Company to seek consent to the Transfer of Equity

Caveats to be read in further to the above West Bromwich Mortgage Company transfer of equity Advice :

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

Transfer of Equity Conveyancing for Leasehold premises

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 restrictions are not strictly observed you may be in breach of 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 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 varies based on the market value of the property at the time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with West Bromwich Mortgage Company your property may be repossessed.

Preparing the Transfer of Equity with a West Bromwich Mortgage Company Mortgage

When it comes to preparing the the Land Registry documents your conveyancer 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 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 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.


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