Recently asked questions relating to Bluestone Mortgages transfer of equity

• Online reading suggests that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor where I am transferring equity and at the same time remortgaging with Bluestone Mortgages
• Me and a friend got a joint mortgage with Bluestone Mortgages on a apartment about a year ago. I am now looking to get a apartment by myself and my friend would like to buy me out. Assuming we can agree a figure what happens next? Is there likely to be any issue with Bluestone Mortgages with him being on the hook for the total loan rather than only half of it?
• Me and my former wife and I are searching for an affordable conveyancing solicitor to assist in a transfer of equity and refinance with Bluestone Mortgages. I I am concerned about appointing the wrong one but with many conveyancing firms who do transfer of equity conveyancing out there...who do I opt for?
• What do I do if I am dissatisfied with the conveyancing solicitor who did my transfer of equity conveyancing?
• Is it sensible to stop the direct debit for my mortgage with Bluestone Mortgages as soon as a date for my remortgage and transfer of equity has been set?
• My fiance and myself have equal shares in a investment property. I am a top rate tax payer. Ideally I wish to complete a transfer of equity into her name with a view to reduce our tax on rental income. Assuming Bluestone Mortgages are fine with this the legal fees are inexpensive. What are the implications when we dispose of the property? Would my GGT relief be lost.
• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Bluestone Mortgages?

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

General Advice to read in conjunction with the above Bluestone Mortgages transfer of equity Questions and Answers :

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, provisions in the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in violation of your covenants under the lease. This could trigger 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 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 varies based on the market value of the property at the conclusion of the transfer of equity transaction.

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.