Recently asked questions relating to Zephyr Mortgages transfer of equity

• I currently have a joint Zephyr Mortgages mortgage with my step-brother and am investigating the option of him taking on the outstanding mortgage and removing myself from it, so as to enable me to buy a property with my fiance. The outstanding mortgage is about 250k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax due?
• I am thinking of refinancing my property in Sedgefield does my lawyer have to be on the Zephyr Mortgages Conveyancing panel. The conveyancing also involves a transfer of equity.
• When it comes to transfer of equity conveyancing involving refinance with Zephyr Mortgages should I be paying VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
• I am hoping to refinance my flat in Ampthill moving from Birmingham Midshires to Zephyr Mortgages. The maisonette is currently in joint names but propose for it to be in my name only as and when I switch. My wife has agreed to this and is happy to sign a form but neither of us want to get a second conveyancer involved.
• What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my Zephyr Mortgages mortgage account?
• Can I transfer the equity held in my property with my Zephyr Mortgages mortgage?
• I already have a home loan with Zephyr Mortgages and am maintaining my existing mortgaging but wish to have it in my name only so my former husband won't be on it any longer. How long can it take for the application to be processed?

Examples of questions in a conveyancer form relating to Zephyr Mortgages Transfer of Equity

General Advice to read in further to the above Zephyr Mortgages transfer of equity information :

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 landlord. If such terms are not adhered to 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 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 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 valuation 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 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.

Content 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.