Common questions relating to Intelligent Finance transfer of equity

• What are the average solicitors costs are for a transfer of equity? I'm in the process of remortgaging - moving over to Intelligent Finance - and have been quoted Three Hundred pounds plus VAT by Intelligent Finance's appointed conveyancer, Is this a reasonable price?
• My former husband are planning to get a conveyancing solicitor in place for a remortgage with Intelligent Finance. Transfer of Equity conveyancing is also requiredI have used the different rating based services and the results are from all over England and Wales. How necessary is it to appoint a conveyancing solicitor local to us?
• Online reading suggests that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor if I need to be transferring equity and simultaneously switching mortgage with Intelligent Finance
• I am planning on removing a name from a joint mortgage and the Intelligent Finance need me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Timperley conveyancer to deal with the transfer of equity? They need to be on the Intelligent Finance conveyancing panel.
• How and when do I cover the costs of stamp duty due for the transfer of equity in my house in my sole name which is happening at the same time as a refinancing with Intelligent Finance?
• My partner and I co-own a property in Blaenavon . Mortgage is with Intelligent Finance. I want to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Is this likely to be easy to so?
• My wife and myself have equal shares in a buy to let. I am a top rate tax payer. Preferably I would like to complete a transfer of equity to her sole name with a view to mitigate tax on rental income. Assuming Intelligent Finance are fine with this the legal fees are not high. However what happens when we dispose of the property? Would my GGT relief be lost.

Information that may be required from your lawyer could ask about your Intelligent Finance Transfer of Equity

Caveats to be read in further to the above Intelligent Finance transfer of equity Questions and Answers :

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 Intelligent Finance conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such restrictions are not strictly observed 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 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 Intelligent Finance 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 Intelligent Finance 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 finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Intelligent Finance 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 Intelligent Finance 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.

Information provided on this webpage is for general information and only applies to England and Wales. It does not constitute 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.