Top seven questions relating to April Mortgages transfer of equity

• I own a house in Miles Platting , with a April Mortgages mortgage with my ex partner. He and his new partner are going to acquire my share. We had consent from April Mortgages to replace my name with hers. The transfer of equity needs to be completed by a conveyancer for April Mortgages (apparently). Can we deal with the Land Registry change?
• I currently have a joint April Mortgages mortgage with my step-brother and am investigating the possibility of him taking on the outstanding mortgage and removing myself from it, to enable me to purchase somewhere with my fiance. The remaining mortgage is in the region 175k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax payable?
• Me and my partner jointly own a house in Ampthill . Home loan is with April Mortgages. I wish to transfer full ownership to him with no payment of money but without using a lawyer. Is this likely to be easy to so?
• I got divorced in 2010. I simply never got around to transfer ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. April Mortgages is willing to transfer the full equity in my name (affordability checks done). Does my ex need a conveyancer?
• I am led to believe we would need at least AP1 and TR1. Is this true?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with April Mortgages?
• My dad passed away early last year leaving a loan-free house to me and my brother in equal shared. Having continues to reside at the premises, there was a provision in the will saying the premisescould not be sold for three years following her death so he could remain there for a specified time frame. He now says he would like to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the usual way to buy my equity?

Examples of information requested in a lawyer questionnaire concerning a April Mortgages Transfer of Equity

Caveats to be read in supplemental the above April 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 April Mortgages conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in breach of 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 April 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 April 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 conveyancing.

Preparing the Transfer of Equity with a April Mortgages 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 April 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.