Sample questions relating to Capital Home Loans transfer of equity
- I am thinking of remortgaging my house in Friern Barnet
does my lawyer need to be on the Capital Home Loans Solicitor panel. The conveyancing also involves a transfer of equity.
- After three years estranged I have made the decision to transfer my share of our flat to my husband who is re-mortgaging with Capital Home Loans. Can a transfer of equity be completed within four weeks?
- I got my Decree Absolute in 2010. Foolishly I never got around to transfer ownership from both our names to just in my name. I am ready to do that and so is she. Transfer-of-equity is needed. Capital Home Loans is content to transfer the full equity in my name (financial checks done). Does my ex need a conveyancer?
- I own a apartment in Wakefield
, with a Capital Home Loans mortgage with my ex partner. He and his new partner are going to buy me out. We had the go ahead from Capital Home Loans to replace my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Capital Home Loans (apparently). In order to save fees can I do the Land Registry change?
- As things stand I have a joint Capital Home Loans mortgage with my step-brother and am investigating the option of him assuming responsibility for the outstanding mortgage and removing myself from it, so as to enable me to purchase somewhere with my soon-to-be-wife. The remaining mortgage is in the region 250k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty due?
- How and when do I cover the costs of the Stamp Duty Land Tax due for the transfer of equity in my property in my name alone which is happening at the same time as a switching mortgage via Capital Home Loans?
- My friend and I got a joint mortgage with Capital Home Loans on a flat in 2013. I am now thinking of purchasing a apartment by myself and my friend would like to buy me out. On the basis that we can settle on an amount what are the next steps? Would there be any potential issue with Capital Home Loans with him being responsible for the total loan rather than only part of it?
Questions that your conveyancer is likely to ask about your Capital Home Loans Transfer of Equity
Has consent been obtained from Capital Home Loans to the proposed transfer of equity?
Who will be responsible for the costs of the Transfer of Equity?
Please inform us if you are making any payment for the Transfer of Equity and to whom and disclose the amount?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Would you like us to prepare Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
Important warnings to consider in in addition to the above Capital Home Loans transfer of equity Questions and Answers :
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 titles
If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in breach 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 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 conveyancing solicitor 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 varies based on the market value of the property at finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Capital Home Loans your property may be repossessed.
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 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 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.
