Kensington Mortgage transfer of equity: q and a’s

• My ex are planning to get a conveyancing solicitor lined up for a new mortgage with Kensington Mortgage. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over UK. How necessary is it to have a conveyancing solicitor local to us?
• I intend to refinance my maisonette in Romsey moving from Birmingham Midshires to Kensington Mortgage. The flat is currently in joint names but I would like it to be in my name only as and when I transfer. My husband is OK with this and is happy to sign a form but neither of us want to get a second conveyancing solicitor involved.
• I am in the process of mortgaging my apartment in Dunnington does my lawyer have to be on the Kensington Mortgage Solicitor panel. The conveyancing also involves a transfer of equity.
• Having been 3 years estranged I have opted to relinquish up my share of our house to my husband who is re-mortgaging with Kensington Mortgage. Can a transfer of equity be completed in less than 28 days?
• Can I apply to request a further advance from Kensington Mortgage as part of a Transfer of Equity?
• My dad passed away last March leaving a loan-free semi to me and my brother equally. Having continues to reside at the premises, there was a clause in the will saying the propertycould not be sold for 2 years after her passing so he could reside there for a prescribed period. He now wishes to remain in the premises beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the usual way to buy my share?
• I am filling out a Kensington Mortgage transfer of equity request and have come to the questions regarding debts etc. I do some debts that I have been discharging for a number of years, in fact they no longer remain my credit score. Am I obliged to reveal these?

Information that may be required from your conveyancing solicitor could ask regarding your Kensington Mortgage Transfer of Equity

Important warnings to consider in in addition to the above Kensington Mortgage transfer of equity information :

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 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 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 lawyer 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 is dependent on the valuation of the property at the conclusion 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.

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.