Questions and answers: Bluestone Mortgages transfer of equity

• Can I transfer the equity held in my property with my Bluestone Mortgages mortgage?
• How and when do I pay stamp duty chargeable for the transfer of equity in my home in my name alone which is taking place at the same time as a switching mortgage via Bluestone Mortgages?
• Have recently split up with my partner of thirty years. I'm now back with my parents again and she wishes to stay in the apartment and buy me out. What percentage do I get. Is it 50% of the equity after paying off the mortgage with Bluestone Mortgages? I assume proper valuations are required but I really need ensure that I'm getting the best deal
• Our financial adviser has suggested using their lawyer for our Transfer of Equity plus remortgage with Bluestone Mortgages - Is it not simpler advisable to just instruct them?
• I am in the market for an affordable conveyancing lawyer to assist in a transfer of equity and remortgage with Bluestone Mortgages. I I am fearful of appointing the wrong one and there's so many conveyancing practices who do transfer of equity conveyancing to pick from...who's the best?
• What are the average legal fees are for a transfer of equity? I'm in the process of remortgaging - moving over to Bluestone Mortgages - and have been quoted £350 plus VAT by Bluestone Mortgages's appointed lawyer, Is this is a good price or not?
• Can you tell me how to have a person removed from the deeds to a house where the mortgage is with Bluestone Mortgages

Questions that your conveyancing solicitor may ask in relation to your Bluestone Mortgages Transfer of Equity

Caveats to be read in further to the above Bluestone 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 Bluestone 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 have a requirement for notices to be served and that you obtain the consent of the landlord. If such restrictions 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 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 lawyer will check with Bluestone 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 Bluestone 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 Bluestone 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 Bluestone 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.