Sample questions relating to Gen H transfer of equity

• Is it sensible to cancel the direct debit for my mortgage with Gen H as soon as a date for my remortgage and transfer of equity has been set?
• Have recently split up with my wife of twenty years. I'm now living with my mum and dad and she wants to stay in the apartment and pay me off. What portion do I get. Is it 50% of the equity after paying off the Gen H home loan? I assume proper valuations are necessary but I would like ensure that I'm getting I am not being walked over
• I am planning on removing a name from a joint mortgage and the Gen H require me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Crabtree conveyancing solicitor to deal with the transfer of equity? They need to be on the Gen H conveyancing panel.
• My wife and I jointly own a investment property. I am a top rate tax payer. Preferably I would like to complete a transfer of equity into her name with a view to reduce our tax on the letting income. If Gen H are happy with this the legal fees are inexpensive. What are the implications when we sell? As I would no longer be on the title documents am I giving up my CGT relief.
• Given that we have been a number of years apart I have made the decision to transfer my interest in our property to my husband who is re-mortgaging with Gen H. Can a transfer of equity be completed inside 28 days?
• My divorce has gone through as is the consent order. Now I need to address the transfer of equity at the land registry and the Gen H mortgage. I have asked Gen H for the transfer of equity application. What are my next steps?
• What should I be budgeting for when it comes to what legal costs are for a transfer of equity? I'm in the process of remortgaging - moving over to Gen H - and have been quoted Four Hundred pounds excluding VAT by Gen H's appointed conveyancer, Is this is a good price or not?

Information that may be required from your lawyer may ask in relation to your Gen H Transfer of Equity

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

Transfer of Equity Conveyancing for Leasehold premises

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 freeholder. If such terms are not adhered to you may be in breach of the lease. This could trigger 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 conveyancing solicitor will check with Gen H 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 Gen H 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 market value of the property at finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a Gen H 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 Gen H 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 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.