Top seven questions relating to Zephyr Mortgaages transfer of equity
- I purchased a house with my brother six years ago Since then, we have both got married. We are now looking to do a transfer of equity so my name comes off the Zephyr Mortgaages mortgage. There is a meaningful difference between the value the mortgage company say and what the property would sell for currently. Can you offer any advice?
- Can you tell me how to have someone removed off the deeds to a property where the home loan is with Zephyr Mortgaages
- Is there such a thing a transfer of equity stamp duty calculator?
- Am I best advised stop the direct debit for my mortgage with Zephyr Mortgaages as soon as a date for my remortgage and transfer of equity has been set?
- What should I be budgeting for when it comes to what conveyancing costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Zephyr Mortgaages - and have been quoted £350 plus VAT by Zephyr Mortgaages's appointed conveyancing solicitor, Have I been over quoted?
- I intend to refinance my apartment in Wakefield
switching from Nationwide to Zephyr Mortgaages. The maisonette is currently in joint names but propose for it to be in my name only once I switch. My former partner has agreed to this and is willing to sign a form but neither of us want to incur conveyancing solicitor fees.
- Me and a friend got a joint mortgage with Zephyr Mortgaages on a property about a year ago. I am now looking to get a house by myself and my friend would like to buy me out. On the basis that we can settle on an amount what happens next? Is there likely to be any concerns with Zephyr Mortgaages with him being responsible for the total mortgage as opposed to only part of it?
Examples of information requested in a conveyancing solicitor questionnaire relating to Zephyr Mortgaages Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Can you give the details of anyone who jointly owns the premises with you?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
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 confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Caveats to be read in supplemental the above Zephyr Mortgaages transfer of equity Advice :
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 Mortgaages 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 landlord. If such conditions are not complied with you may be in violation 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 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 conveyancing solicitor will check with Zephyr Mortgaages 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 Mortgaages 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.
Your property may be repossessed if you do not keep up repayments on your mortgage with Zephyr Mortgaages.
Preparing the Transfer of Equity with a Zephyr Mortgaages 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 Mortgaages 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 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.