Questions and answers: Whistletree transfer of equity

• I am in the process of mortgaging my flat in Littleborough does my lawyer have to be on the Whistletree Solicitor panel. The conveyancing also involves a transfer of equity.
• My Whistletree mortgage we jointly entered into with ex, who is agreeable to be removed and put the house in my name alone. Whistletree will permit the transfer of equity to me solely. Will Whistletree call my boss to confirm my salary?
• Can I apply to request more money from Whistletree as part of a Transfer of Equity?
• Am I best advised cancel my mortgage payments with Whistletree once a date for my remortgage and transfer of equity has been set?
• Have recently separated from my partner of twenty years. I'm now living with my parents again and she wants to stay in the flat and buy me out. What portion am I entitled to. Is it half of the equity after redeeming the mortgage with Whistletree? I assume proper valuations are necessary but I would like ensure that I'm getting I am not being taken advantage of
• I am filling out a Whistletree transfer of equity form and have come to the questions concerning debts etc. There are some debts that I have been discharging since 2008, in fact they have long since disappeared from my credit rating. Do I need to set these out?
• My former husband are looking to get a conveyancer lined up for a refinance with Whistletree. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over UK. Do we need to have a conveyancing solicitor local to us?

Examples of information requested in a conveyancing solicitor questionnaire relating to Whistletree Transfer of Equity

Important warnings to consider in supporting the above Whistletree 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 Whistletree conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

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 freeholder. If such terms are not adhered to you may be in violation 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 cases, 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 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 varies based on the valuation of the property at the conclusion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Whistletree 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 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 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.