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Zephyr Mortgages

Sample questions relating to Zephyr Mortgages transfer of equity

  • My mum passed away early last year leaving a unencumbered house to me and my brother in equal shared. Having continues to reside at the property, there was a provision in the will saying the housecould not be sold for 2 years following her death so he could continue to live there for a prescribed period. He now wants to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the traditional way to purchase my equity?
  • The financial adviser has suggested using their conveyancer for my Transfer of Equity plus remortgage with Zephyr Mortgages - won’t it be easier to just instruct them?
  • My current home loan is with Zephyr Mortgages. Can I transfer equity to someone less than eighteen years old?
  • My partner and I co-own a property in Wakefield . Mortgage is with Zephyr Mortgages. I wish to transfer full ownership to him with no passing of money but without using a lawyer. Is this likely to be simple?
  • Is it possible to transfer the equity held in my property with my Zephyr Mortgages home loan?
  • Law month I separated from my partner of 18 years. I'm now living with my mum and dad and she wants to stay in the apartment and buy me out. What percentage do I get. Is it 50% of the equity after redeeming the mortgage with Zephyr Mortgages? I assume proper valuations are necessary but I would like to be confident that I'm getting the best deal
  • What are the average solicitors fees are for a transfer of equity? I'm in the process of remortgaging - new loan with Zephyr Mortgages - and have been quoted £350 excluding VAT by Zephyr Mortgages's approved lawyer, Have I been over quoted?

Sample of questions in a conveyancer questionnaire relating to Zephyr Mortgages Transfer of Equity

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)?

We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)

Please give the name(s) and addresse(s) of those who jointly own the property with you?

Please provide the details of anyone to be removed from the property title?

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Please clarify if you are providing any payment for the Transfer of Equity and to whom and disclose any such sums?

Important warnings to consider in in addition to the above Zephyr Mortgages 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 Zephyr Mortgages conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, the lease may require 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 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 Zephyr Mortgages 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 Zephyr Mortgages 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 valuation of the property at finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Zephyr Mortgages your property may be repossessed.

Preparing the Transfer of Equity with a Zephyr Mortgages 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 Zephyr Mortgages 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.

Information contained within 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 Zephyr Mortgages transfer of equity