Top seven questions relating to Accord Mortgages transfer of equity

• I am selling my share of a apartment in Hendon to my co-owners husband, they are sticking with Accord Mortgages being the the existing lender. We are in heated discussion as to who should cover the charges for the transfer of equity. Is this normally split or is one of us liable for the charges for?
• My father died seven months ago leaving a mortgage-free bungalow to me and my step brother in equal shared. Having continues to reside at the property, there was a provision in her will specifying that the propertycould not be sold for 2 years after her death so he could reside there for a specified time frame. He now wants to remain in the property beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the traditional way to buy my share?
• I already have a home loan with Accord Mortgages and am retaining my existing mortgaging but applying to have it in my name only so my former partner won't be on it any longer. How long can it take for the forms to be processed?
• I got divorced in 2011. I simply never dealt with the change the ownership from both our names to my sole name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Accord Mortgages is happy to transfer the full equity in my name (financial checks done). Does she need a solicitor?
• What are my options where I am unhappy with the conveyancer who conducted our transfer of equity transaction?
• How much the typical solicitors charges are for a transfer of equity? I need to transfer equity and remortgage - moving over to Accord Mortgages - and have been quoted £350 including VAT by Accord Mortgages's approved conveyancing solicitor, Have I been over quoted?
• Our financial adviser has suggested using their lawyer for the Transfer of Equity plus remortgage with Accord Mortgages - won’t it be advisable to just instruct them?

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

Caveats to be read in in addition to the above Accord 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 Accord 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 obtain the consent of the landlord. 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 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 Accord 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 Accord 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 time of completion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Accord 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 Accord 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.

Content on 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.