Recently asked questions relating to Bluestone Mortgages transfer of equity

• My Bluestone Mortgages mortgage we jointly entered into with ex, who has agreed to come off the deeds and let me have the property. Bluestone Mortgages will permit the transfer of equity to my individual name. Will Bluestone Mortgages write my company to confirm my salary?
• Am I best advised stop the direct debit for my mortgage with Bluestone Mortgages once a date for my remortgage and transfer of equity has been agreed?
• What is the process for adding or subtracting names (transfer of equity) to or from my Bluestone Mortgages mortgage account?
• I am completing a Bluestone Mortgages transfer of equity application and have come to the part concerning defaults etc. There are some debts that I have been discharging over a long period, I understand that they have long since disappeared from my credit records. Am I obliged to disclose these?
• Me and a friend got a joint mortgage with Bluestone Mortgages on a property in 2013. I am now looking to get a property by myself and my friend would like to buy me out. Assuming we can agree an amount what happens next? Would there be any potential issue with Bluestone Mortgages with him being solely liable for the total loan rather than only part of it?
• Do I need legal representation when doing a transfer of equity where the mortgage is to remain with Bluestone Mortgages?
• I got my Decree Absolute four years ago. Foolishly I never got around to change the ownership from the current 'joint' status to my sole name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Bluestone Mortgages is happy to transfer the property and loan in my name (financial checks done). Does she need any legal representation?

Questions that your conveyancing solicitor could ask about your Bluestone Mortgages Transfer of Equity

General Advice to read in further to 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

If your property is 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 restrictions are not strictly observed you may be in breach of the lease. This could trigger 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 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 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 conclusion 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 lawyer 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.

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.