Frequently asked questions relating to Zephyr Mortgages transfer of equity

• How and when do I incur the Stamp Duty Land Tax due for the transfer of equity in my property in my sole name which is taking place simultaneously with a switching mortgage with Zephyr Mortgages?
• I am thinking of remortgaging my flat in Blaenavon does my lawyer have to be on the Zephyr Mortgages Solicitor panel. The conveyancing also involves a transfer of equity.
• What can I do where I am dissatisfied with the lawyer who undertook our transfer of equity conveyancing?
• My decree absolute has gone through as is the consent order. Now I need to deal with the transfer of equity on title deeds and the Zephyr Mortgages mortgage. I have contacted Zephyr Mortgages for the transfer of equity forms. What do I do now?
• I already have a home loan with Zephyr Mortgages and am maintaining my existing mortgaging but wish to have have the equity transferred to my name alone so my former husband won't be on it any longer. How long can it take for the paperwork to be processed?
• Am I best advised cancel my mortgage payments with Zephyr Mortgages once a date for my remortgage and transfer of equity has been set?
• Having been 3 years apart I have decided to transfer my interest in the former home to my husband who is refinancing with Zephyr Mortgages. Can a transfer of equity be done inside one month?

Sample of questions in a lawyer form relating to Zephyr Mortgages Transfer of Equity

General Advice to read in conjunction with the above Zephyr Mortgages transfer of equity Advice :

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 Zephyr Mortgages conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such restrictions are not strictly observed 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 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 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 market value of the property at the conclusion of the transfer of equity transaction.

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 lawyer 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.