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Recently asked questions relating to Whistletree transfer of equity

  • As things stand I have a joint Whistletree mortgage with my cousin and am investigating the possibility of him taking on the outstanding mortgage and subtracting myself from it, so as to enable me to purchase a place with my partner. The outstanding mortgage is approx 200k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty payable?
  • I am completing a Whistletree transfer of equity request and have arrived at the questions regarding defaults etc. I do some debts that I have been paying off over a long period, I understand that they have long since disappeared from my credit score. Do I need to disclose these?
  • My mortgage broker has suggested using their conveyancer for our Transfer of Equity plus remortgage with Whistletree - Surely it’s advisable to just instruct them?
  • I am considering remortgaging my apartment in Sedgefield does my lawyer have to be on the Whistletree Conveyancing panel. The conveyancing also involves a transfer of equity.
  • I purchased a house with my brother in 2009 Since then, we have both got married. We are now looking to do a transfer of equity so my name comes off the Whistletree mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
  • What are the average solicitors charges are for a transfer of equity? I need to transfer equity and remortgage - new loan with Whistletree - and have been quoted £250 including VAT by Whistletree's appointed lawyer, Is this a reasonable price?
  • My wife and myself jointly own a BTL. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity into her name in order reduce our tax on rental income. Assuming Whistletree are fine with this the legal fees are inexpensive. However what happens when we dispose of the property? Would my GGT relief be lost.

Sample of information requested in a conveyancing solicitor form relating to Whistletree Transfer of Equity

Please give the name(s) and addresse(s) of anyone to be added to the title deeds?

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

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

Please give the details of anyone to be extracted from the property title?

Please inform us if you are making any payment for the Transfer of Equity and to whom and notify us any such sums?

Have you approached Whistletree to seek consent to the Transfer of Equity

General Advice to read in supplemental the above Whistletree transfer of equity information :

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 titles

Should the tenure of your property be 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 conditions are not complied with you may be in breach 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 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 is dependent on the market value of the property at the time of completion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Whistletree.

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.


Frequently asked questions relating to Whistletree transfer of equity