GE Money transfer of equity example support desk enquires

• Do I need legal advice when doing a transfer of equity where the mortgage is to remain with GE Money?
• My financial adviser has suggested using their lawyer for the Transfer of Equity plus remortgage with GE Money - Surely it’s advisable to just use them?
• I recently bought a house without my wife's name on the title documents. My conveyancer advised it is due to the fact that she was not in the mortgage with GE Money. Is it possible for me to put her name on the deeds?
• I co-own a house in Rye , with a GE Money mortgage with my ex partner. He and his new partner are going to acquire my share. We had consent from GE Money to remove my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for GE Money (supposedly). Is it possible for us to deal with the Land Registry change?
• My GE Money home loan is in joint names with ex, he has agreed to be removed and put the house in my name alone. GE Money have consented to the transfer of equity to my individual name. Will GE Money call my company to verify my salary?
• Can you tell me how to have a person removed off the title documents to a property where the mortgage is with GE Money
• Given that we have been four years estranged I have made the decision to give up my interest in the former home to my husband who is re-mortgaging with GE Money. Could this transfer of equity be completed inside 28 days?

Examples of information requested in a lawyer questionnaire relating to GE Money Transfer of Equity

Caveats to be read in supplemental the above GE Money 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 GE Money conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not strictly observed 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 GE Money 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 GE Money 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 the conclusion of the transfer of equity transaction.

Preparing the Transfer of Equity with a GE Money Mortgage

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

If GE Money 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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided 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.