Sample questions relating to Kensington Mortgage transfer of equity

• I am selling my share of a apartment in Birmingham to my co-owners husband, they are sticking with Kensington Mortgage as the the existing mortgage company. We are haggling as to who must pay the legal bill for the transfer of equity. Is this normally shared or is one party liable for the charges for?
• My Kensington Mortgage home loan is in joint names with ex, he is agreeable to come off the deeds and put the house in my name alone. Kensington Mortgage will permit the transfer of equity to me solely. Do Kensington Mortgage get in touch with my company to confirm my salary?
• Can you tell me how to have a person removed off the deeds to a house if the mortgage is with Kensington Mortgage
• I am answering a Kensington Mortgage transfer of equity form and have come to the section that asks about defaults etc. I do some debts that I have been discharging for a number of years, in fact they no longer remain my credit score. Must I set these out?
• Kensington Mortgage yesterday agreed I can take over the mortgage on my home. I had applied for a transfer of equity but is this a transfer of ownership of the title deeds on top?
• What are my options where I am not happy with the conveyancing solicitor who conducted my transfer of equity conveyancing?
• As things stand I have a joint Kensington Mortgage mortgage with my brother and am investigating the possibility of him taking on the whole mortgage and extracting myself from it, so as to enable me to buy a place with my fiance. The outstanding mortgage is approx 300k, and the property value is about 450k. Is this a transfer of equity? Is stamp duty due?

Examples of information requested in a conveyancer questionnaire relating to Kensington Mortgage Transfer of Equity

Information to consider in conjunction with the above Kensington Mortgage transfer of equity Questions and Answers :

Tax and Legal

There are numerous potential tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Kensington Mortgage 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 require that you obtain the consent of the landlord. If such terms are not adhered to 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 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 Kensington Mortgage 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 Kensington Mortgage 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 the time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Kensington Mortgage 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 Kensington Mortgage 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.

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.