Top seven questions relating to JPMorgan transfer of equity

• I acquired a house with my brother in 2008 Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name comes off the JPMorgan mortgage. There is a 40k difference between the value the bank hold and what the property would sell for currently. Can you offer any advice?
• I am planning on 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 Heathfield lawyer to deal with the transfer of equity? They need to be on the JPMorgan conveyancing panel.
• My JPMorgan mortgage is in joint names with ex, he has agreed to be removed and let me have the property. JPMorgan have consented to the transfer of equity to my individual name. Do JPMorgan get in touch with my company to verify my salary?
• Our mortgage broker has recommended their conveyancer for the Transfer of Equity plus remortgage with JPMorgan - Surely it’s advisable to just instruct them?
• How much the typical solicitors costs are for a transfer of equity? I need to transfer equity and remortgage - moving over to JPMorgan - and have been quoted £250 including VAT by JPMorgan's approved conveyancer, Have I been over quoted?
• As things stand I have a joint JPMorgan mortgage with my step-brother and am investigating the feasibility of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to purchase somewhere with my soon-to-be-wife. The outstanding mortgage is in the region 200k, and the property value is about 500k. Is this a transfer of equity? Is stamp duty due?
• I jointly own a house in Ampthill , with a JPMorgan loan with my ex partner. Him and his fiance are going to buy me out. We had the go ahead from JPMorgan to substitute my name with hers. The transfer of equity has to be done by a conveyancing solicitor for JPMorgan (supposedly). Can we do the Land Registry change?

Questions that your conveyancing solicitor could ask about your JPMorgan Transfer of Equity

Information to consider in further to the above JPMorgan 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 JPMorgan conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such terms are not adhered to 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 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 conveyancing solicitor 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 varies based on the market value of the property at finalisation 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 conveyancing solicitor 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.