Examples of recent questions relating to Astra Mortgages transfer of equity
- Me and a friend got a joint mortgage with Astra Mortgages on a property a couple of years ago. I am now thinking of purchasing a property by myself and my friend would like to buy me out. Assuming we can agree a price where do we go? Is there likely to be any problem with Astra Mortgages with him being responsible for the total loan rather than only part of it?
- I am thinking of mortgaging my flat in Witham
does my lawyer need to be on the Astra Mortgages Solicitor panel. The conveyancing also involves a transfer of equity.
- My dad died last March leaving a mortgage-free bungalow to me and my step brother 50:50. He has always lived in the premises, there was a provision in the will specifying that the premisescould not be sold for 2 years after her death so he could reside there for a specified time frame. He now wishes to remain in the premises beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the conventional way to acquire my equity?
- I am planning on removing a name from a joint mortgage and the Astra Mortgages require me to use a conveyancer to carry out the conveyancing. Can you recommend a reasonably priced Miles Platting
conveyancer to deal with the transfer of equity? They need to be on the Astra Mortgages conveyancing panel.
- What do I do if I am unhappy with the lawyer who handled our transfer of equity conveyancing?
- My decree absolute has gone through as is the consent order. Now I must sort out the transfer of equity on title deeds and the Astra Mortgages mortgage. I have contacted Astra Mortgages for the transfer of equity forms. What happens next?
- My wife and myself have 50:50 shares in a investment property. I am a top rate tax payer. Ideally I would like to do a transfer of equity to her sole name to mitigate tax on rental income. Assuming Astra Mortgages are content with this the legal fees are not prohibitive. What are the implications when we dispose of the property? As I would no longer be on the deeds would I lose my CGT relief.
Information that may be required from your lawyer could ask in relation to your Astra Mortgages Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
Please give the name(s) and addresse(s) of anyone to be removed from the title deeds?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Has one of the registered proprietors died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Where you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Can you give the details of those who jointly own the property with you?
General Advice to read in supplemental the above Astra Mortgages 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 Astra Mortgages conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such terms are not adhered to 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 as a result of 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 conveyancer will check with Astra 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 Astra 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 conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Astra Mortgages your property may be repossessed.
Preparing the Transfer of Equity with a Astra 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 Astra 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 provided 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.
