Whistletree transfer of equity: q and a’s
- I am filling out a Whistletree transfer of equity application and have arrived at the part regarding defaults etc. There are some debts that I have been discharging since 2008, I understand that they have long since disappeared from my credit score. Do I need to set these out?
- What if my application doesn't meet Whistletree lending criteria for a transfer of equity?
- My former wife are planning to get a conveyancing solicitor lined up for a refinance with Whistletree. Transfer of Equity conveyancing is also necessaryI have used the different comparison based tools and the results are from all over UK. Do we need to appoint a conveyancer local to us?
- I am disposing of my share of a house in Warwick to the other co-owners husband, they are reapplying to Whistletree. We are haggling as to who should pay the legal bill for the transfer of equity. Is this normally shared or is one of us obliged to cover the charges for?
- Law week I split up with my wife of 18 years. I'm now living with my mum and dad and she wants to stay in the apartment and pay me off. What percentage am I entitled to. Is it 50% of the equity after paying off the mortgage with Whistletree? I assume proper valuations are necessary but I would like to be confident that I'm getting what I am entitled to
- I plan to refinance my maisonette in Rye
changing from Coventry BS to Whistletree. The maisonette is currently in joint names but wish for it to be in my name only once I remortgage. My wife is OK with this and is happy to sign a form but neither of us want to get a second conveyancing solicitor involved.
- Me and a friend got a joint mortgage with Whistletree on a flat a couple of years ago. I am now looking to get a house on my own and my friend would like to buy me out. On the basis that we can settle on a figure where do we go? Is there likely to be any problem with Whistletree with him being on the hook for the total mortgage as opposed to only part of it?
Information that may be required from your conveyancing solicitor is likely to ask about your Whistletree Transfer of Equity
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
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 provide the name(s) and addresse(s) of anyone to be added to the property title?
Please clarify where you are making any payment for the Transfer of Equity and to whom and disclose any such sums?
Please let us know of you wish us to draw up a Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
Please provide the details of anyone to be removed from the property title?
Caveats to be read in in addition to the above Whistletree transfer of equity Info :
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 Whistletree conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
If your property is leasehold, provisions in 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 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 lawyer will check with Whistletree 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 Whistletree 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 time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Whistletree your property may be repossessed.
Preparing the Transfer of Equity with a Whistletree Mortgage
When it comes to preparing the the Land Registry documents your lawyer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.
If Whistletree 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 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.
