Top seven questions relating to Capital Home Loans transfer of equity

• I am planning on removing a name from a joint mortgage and the Capital Home Loans need me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Friern Barnet conveyancing solicitor to deal with the transfer of equity? They need to be on the Capital Home Loans conveyancing panel.
• My brother and I got a joint mortgage with Capital Home Loans on a flat a couple of years ago. I am now thinking of buying a house on my own and my friend would like to buy me out. Assuming we can agree an amount what are the next steps? Would there be any potential problem with Capital Home Loans with him being solely liable for the total loan as opposed to only half of it?
• In 2013 I purchased a house without my partner's name on the title documents. My conveyancer advised it is because she is not in the loan offer with Capital Home Loans. Is it possible for me to put her name on the documents at HM Land Registry?
• Do I need legal representation when doing a transfer of equity where the mortgage is to remain with Capital Home Loans?
• What should I be budgeting for when it comes to what conveyancing charges are for a transfer of equity? I need to transfer equity and remortgage - new loan with Capital Home Loans - and have been quoted £350 plus VAT by Capital Home Loans's appointed conveyancing solicitor, Have I been over quoted?
• Is it possible to transfer the equity held in my property with my Capital Home Loans home loan?
• Can I apply to borrow a further advance from Capital Home Loans as part of a Transfer of Equity?

Information that may be required from your conveyancing solicitor could ask regarding your Capital Home Loans Transfer of Equity

Caveats to be read in conjunction with the above Capital Home Loans 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 Capital Home Loans conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in violation of your covenants under 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 Capital Home Loans 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 Capital Home Loans 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 valuation of the property at finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a Capital Home Loans 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 Capital Home Loans 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 lawyer 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.