Common questions relating to JPMorgan transfer of equity

• I am in the process of removing a name from a joint mortgage and the JPMorgan require me to use a conveyancer to carry out the conveyancing. Can you recommend a reasonably priced Crabtree conveyancer to deal with the transfer of equity? They need to be on the JPMorgan conveyancing panel.
• I am searching for a dependable conveyancing solicitor to help me sell in a transfer of equity and remortgage with JPMorgan. I I am concerned about appointing the wrong one but with so many conveyancing organisations who do transfer of equity conveyancing out there...how do I know which to select?
• My fiance and myself equally own a BTL. I am a higher rate tax payer. Ideally I would like to do a transfer of equity into her name to reduce our tax on the letting income. If JPMorgan are fine with this the legal fees are not prohibitive. What are the implications when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
• Is it possible to apply to request a further advance from JPMorgan as part of a Transfer of Equity?
• I got my Decree Absolute in 2010. For some reason I never got around to transfer ownership from both our names to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. JPMorgan is willing to transfer the property and loan in my name (affordability checks done). Does my ex need a solicitor?
• I am hoping to refinance my home in Dunnington changing from RBS to JPMorgan. The maisonette is jointly owned but intend for it to be in my name only as and when I remortgage. My wife has verbally consented to this and is happy to sign a form but neither of us want to get a second lawyer involved.
• My divorce is through as is the consent order. Now I need to deal with the transfer of equity at the land registry and the JPMorgan home loan. I have called JPMorgan for the transfer of equity application. What do I do now?

Sample of questions in a conveyancing solicitor form relating to JPMorgan Transfer of Equity

Caveats to be read in conjunction with the above JPMorgan 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 JPMorgan 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 have a requirement for notices to be served and that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in breach 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 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 conveyancer will check with JPMorgan 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 JPMorgan 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 the conclusion of the transfer of equity transaction.

Preparing the Transfer of Equity with a JPMorgan 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 JPMorgan 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 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.