Foundation Home loans transfer of equity: q and a’s

• I currently have a joint Foundation Home loans mortgage with my cousin and am investigating the possibility of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to purchase a place with my soon-to-be-wife. The outstanding mortgage is in the region 250k, and the property value is about 450k. Is this a transfer of equity? Is land tax involved?
• My ex-fiance and I are searching for a dependable conveyancing solicitor to assist in a transfer of equity and refinance with Foundation Home loans. I am aware of the possibility of getting ripped off and there's many conveyancing organisations who do transfer of equity conveyancing out there...who's the best?
• My existing home loan is with Foundation Home loans. Can I transfer equity to someone less than 18 years old?
• Am I best advised cancel the direct debit for my mortgage with Foundation Home loans as soon as a date for my remortgage and transfer of equity has been agreed?
• Can you tell me how to have a person removed off the title documents to a house if the home loan is with Foundation Home loans
• I am completing a Foundation Home loans transfer of equity form and have come to the part that asks about defaults etc. I do some debts that I have been paying off over a long period, in fact they have long since disappeared from my credit score. Am I obliged to declare these?
• When it comes to transfer of equity conveyancing involving refinance with Foundation Home loans should I be charged value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee

Questions that your lawyer may ask in relation to your Foundation Home loans Transfer of Equity

Information to consider in in addition to the above Foundation Home loans transfer of equity Info :

Tax and Legal

There are numerous potential tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Foundation Home loans conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in breach of 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 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 lawyer will check with Foundation 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 Foundation 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 valuation of the property at the time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Foundation Home loans Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Foundation 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.

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.