Sample questions relating to Fleet Mortgages transfer of equity

• Our financial adviser has recommended their lawyer for my Transfer of Equity plus remortgage with Fleet Mortgages - Surely it’s easier to just instruct them?
• My existing home loan is with Fleet Mortgages. Can I transfer equity to someone who is not yet eighteen years old?
• I am under the impression we would need at least AP1 and TR1. Is this true?
• As things stand I have a joint Fleet Mortgages mortgage with my step-brother and am investigating the possibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, to enable me to buy somewhere with my partner. The outstanding mortgage is about 250k, and the property value is about 450k. Is this a transfer of equity? Is land tax involved?
• Fleet Mortgages yesterday agreed I can take over the mortgage on my home. I had applied for a transfer of equity but is this a transfer of ownership at HMLR as well?
• What if my application doesn't meet Fleet Mortgages lending criteria for a transfer of equity?
• I am disposing of my share of a flat in Woodside to the other co-owners fiance, they are reapplying to Fleet Mortgages. We are haggling as to who should pay the fees for the transfer of equity. Should this be split or is one party obliged to cover the legal bill?

Information that may be required from your conveyancing solicitor may ask about your Fleet Mortgages Transfer of Equity

Information to consider in supporting the above Fleet Mortgages transfer of equity Info :

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 Fleet Mortgages 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 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 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 conveyancing solicitor will check with Fleet 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 Fleet 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 finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Fleet 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 Fleet 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 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.