Questions and answers: Fleet Mortgages transfer of equity

• I am in the process of removing a name from a joint mortgage and the Fleet Mortgages need me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Miles Platting lawyer to deal with the transfer of equity? They need to be on the Fleet Mortgages conveyancing panel.
• I am disposing of my equity in property in Birmingham to my co-owners husband, they are reapplying to Fleet Mortgages. We are in heated discussion as to who must cover the fees for the transfer of equity. Should this be shared or is one of us obliged to cover the charges for?
• I am searching for an affordable conveyancing solicitor to assist in a transfer of equity and remortgage with Fleet Mortgages. I want to avoid being ripped off but with many conveyancing firms who do transfer of equity conveyancing to pick from...how do I know which one is best select?
• I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
• What do I do if I am dissatisfied with the lawyer who conducted my transfer of equity conveyancing?
• I recently purchased a property without my fiance’s name on the title documents. My conveyancer claimed it is because she was not in the mortgage with Fleet Mortgages. Is it possible for me to put her name on the documents at HM Land Registry?
• What should I be budgeting for when it comes to what legal charges are for a transfer of equity? I need to transfer equity and remortgage - new loan with Fleet Mortgages - and have been quoted Four Hundred pounds including VAT by Fleet Mortgages's approved conveyancer, Is this is a good price or not?

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

Information to consider in conjunction with the above Fleet Mortgages 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 Fleet Mortgages conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation of your covenants under 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 lawyer 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 valuation of the property at finalisation of the transfer of equity transaction.

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 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 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.