Examples of recent questions relating to Zephyr Mortgages transfer of equity
- As things stand I have a joint Zephyr Mortgages mortgage with my cousin and am investigating the feasibility of him assuming responsibility for the whole mortgage and removing myself from it, to enable me to buy a place with my partner. The remaining mortgage is about 200k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty payable?
- My decree absolute is through as is the consent order. Now I have to sort out the transfer of equity for the property and the Zephyr Mortgages mortgage. I have contacted Zephyr Mortgages for the transfer of equity application. What are my next steps?
- Can I apply to borrow more money from Zephyr Mortgages as part of a Transfer of Equity?
- Me and my partner jointly own a property in Crabtree
. Mortgage is with Zephyr Mortgages. I wish to transfer full ownership to him with no passing of money but without using a lawyer. Do you think this should be easy to so?
- I am hoping to remortgage my home in Ampthill switching from Halifax to Zephyr Mortgages. The flat is jointly owned but I would like it to be in my sole name once I transfer. My wife has verbally consented to this and is happy to transfer equity but neither of us want to incur lawyer fees.
- How and when do I pay the Stamp Duty Land Tax chargeable for the transfer of equity in my property in my name alone which is happening at the same time as a refinancing via Zephyr Mortgages?
- Me and my former fiance and I are are seeking to find an affordable conveyancing solicitor to help me sell in a transfer of equity and refinance with Zephyr Mortgages. I I am fearful of appointing the wrong one and there's lots of conveyancing practices who do transfer of equity conveyancing out there...how do I know which one is best appoint?
Questions that your conveyancing solicitor is likely to ask in relation to your Zephyr Mortgages Transfer of Equity
Please inform us where you are providing any payment for the Transfer of Equity and to whom and notify us the amount?
Would you like us to draw up a Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Is the transfer of equity subject to a court order? If yes please supply a copy
Important warnings to consider in further to 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, provisions in the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 varies based on the market value of the property at the time of completion 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 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 conveyancer 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 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.