Frequently asked questions relating to Zephyr Mortgages transfer of equity

• Do I need legal representation when doing a transfer of equity where the mortgage is to remain with Zephyr Mortgages?
• I purchased a house with my brother five.seven years ago Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Zephyr Mortgages mortgage. There is a significant difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
• Law month I split up with my partner of 18 years. I'm now back with my mum and dad and she wants to stay in the flat and pay me off. What percentage do I get. Is it 50% of the equity after discharging the Zephyr Mortgages home loan? I assume proper valuations are necessary but I really need ensure that I'm getting what I am entitled to
• My former husband are looking to get a lawyer lined up for a refinance with Zephyr Mortgages. Transfer of Equity conveyancing is also requiredI have used the different rating based tools and the results are from all over the country. Is it important to have a conveyancer local to us?
• Zephyr Mortgages have just agreed I can take over the home loan on the flat. I have applied for a transfer of equity but presumably there is a transfer of ownership at HMLR on top?
• I am selling my share of a house in Woodside to my co-owners husband, they are sticking with Zephyr Mortgages as the the existing mortgage company. We are in heated discussion as to who should pay the charges for the transfer of equity. Should this be shared or is one of us obliged to cover the costs of?
• Me and my partner co-own a flat in Ampthill . Home loan is with Zephyr Mortgages. I want to transfer full ownership to him with no payment of money but without using a lawyer. Do you think this should be easy to so?

Questions that your lawyer is likely to ask in relation to your Zephyr Mortgages Transfer of Equity

Caveats to be read in supporting the above Zephyr Mortgages transfer of equity Info :

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 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 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 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 market value of the property at finalisation 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 lawyer 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 provided on this webpage is for general information and only applies to England and Wales. It should not be regarded as 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.