Common questions relating to Zephyr Mortgages transfer of equity
- My current home loan is with Zephyr Mortgages. Can I transfer equity to someone who is not yet 18 years old?
- How and when do I cover the costs of the Stamp Duty Land Tax due for the transfer of equity in my house in my name alone which is taking place at the same time as a switching mortgage via Zephyr Mortgages?
- I am searching for a quality conveyancing lawyer to assist in a transfer of equity and refinance with Zephyr Mortgages. I I am concerned about being overcharged but with lots of conveyancing practices who do transfer of equity conveyancing out there...who do I opt for?
- What are the average conveyancing fees are for a transfer of equity? I'm in the process of remortgaging - moving over to Zephyr Mortgages - and have been quoted £350 excluding VAT by Zephyr Mortgages's approved conveyancing solicitor, Is this is a good price or not?
- Will I incur any charges for a Transfer of Equity where the current mortgage is with Zephyr Mortgages?
- What can I do where I am not happy with the conveyancing solicitor who undertook our transfer of equity transaction?
- My mum passed away last March leaving a unencumbered semi to me and my half brother equally. He has always lived in the house, there was a clause in the will saying the premisescould not be sold for 24 months after her passing so he could continue to live there for a prescribed period. He now wishes to remain in the house beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the traditional way to acquire my half from me?
Sample of questions in a conveyancer questionnaire relating to Zephyr Mortgages Transfer of Equity
Please list all persons who occupy the property, their respective ages and relationships to you.
Is it the case that one of the registered proprietors died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Please provide the name(s) and addresse(s) of anyone who jointly owns the property with you?
Has consent been obtained from Zephyr Mortgages to the proposed transfer of equity?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please provide the details of anyone to be added to the title deeds?
Important warnings to consider in conjunction with the above Zephyr Mortgages transfer of equity Questions and Answers :
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 titles
If your property is leasehold, the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.
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 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 varies based on the market value of the property at the conclusion of the transfer of equity transaction.
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 conveyancing solicitor 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.