Better HomeOwnership transfer of equity: q and a’s

• My decree absolute has gone through as is the consent order. Now I need to sort out the transfer of equity at the HMLR and the Better HomeOwnership home loan. I have contacted Better HomeOwnership for the transfer of equity application. What happens next?
• I am filling out a Better HomeOwnership transfer of equity request and have come to the questions concerning debts etc. There are some debts that I have been reducing since 2008, I understand that they have long since disappeared from my credit records. Do I need to reveal these?
• My brother and I got a joint mortgage with Better HomeOwnership on a property in 2013. I am now thinking of purchasing a apartment by myself and my friend would like to buy me out. Assuming we can agree an amount what happens next? Is there likely to be any issue with Better HomeOwnership with him being solely liable for the total mortgage as opposed to only part of it?
• My Better HomeOwnership mortgage we jointly entered into with ex, who has agreed to come off the deeds and let me have the property. Better HomeOwnership have consented to the transfer of equity to me solely. Will Better HomeOwnership contact my company to check my salary?
• Can I transfer the equity held in my property with my Better HomeOwnership home loan?
• I plan to refinance my home in Littleborough moving from Leeds Building Society to Better HomeOwnership. The apartment is currently in joint names but propose for it to be in my name only once I transfer. My husband is OK with this and is happy to sign a form but neither of us want to incur conveyancing solicitor charges.
• I purchased a property with my brother five.seven years ago Since purchasing the property, we have both got married. We are now looking to do a transfer of equity so my name comes off the Better HomeOwnership mortgage. There is a significant difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?

Questions that your lawyer could ask in relation to your Better HomeOwnership Transfer of Equity

Information to consider in further to the above Better HomeOwnership 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 Better HomeOwnership 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 have a license to do so from the landlord. If such terms are not adhered to 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 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 conveyancing solicitor will check with Better HomeOwnership 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 Better HomeOwnership 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 valuation of the property at finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a Better HomeOwnership 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 Better HomeOwnership 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 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.