Recently asked questions relating to Magellan Homeloans transfer of equity

• I am planning on removing a name from a joint mortgage and the Magellan Homeloans require me to use a conveyancer to carry out the conveyancing. Can you recommend a reasonably priced Sedgefield lawyer to deal with the transfer of equity? They need to be on the Magellan Homeloans conveyancing panel.
• Me and my former fiance and I are are looking to find a value for money conveyancing solicitor to assist in a transfer of equity and refinance with Magellan Homeloans. I I am fearful of appointing the wrong one and there are lots of conveyancing firms who do transfer of equity conveyancing to choose from...who's the best?
• My decree absolute is through as is the consent order. Now I need to deal with the transfer of equity at the land registry and the Magellan Homeloans mortgage. I have asked Magellan Homeloans for the transfer of equity forms. What do I do now?
• I am in the process of remortgaging my property in Romsey does my lawyer have to be on the Magellan Homeloans Solicitor panel. The conveyancing also involves a transfer of equity.
• I am transferring my equity in house in Hendon to my co-owners husband, they are reapplying to Magellan Homeloans. We are haggling as to who should cover the charges for the transfer of equity. Should this be split or is one party liable for the legal bill?
• Law month I split up with my wife of twenty years. I'm now living with my parents again and she wants to remain in the apartment and buy me out. What portion am I entitled to. Is it 50% of the equity after discharging the mortgage with Magellan Homeloans? I assume proper valuations are required but I really need to be confident that I'm getting the best deal
• Is it sensible to stop the direct debit for my mortgage with Magellan Homeloans as soon as a date for my remortgage and transfer of equity has been set?

Examples of questions in a conveyancing solicitor form concerning a Magellan Homeloans Transfer of Equity

General Advice to read in in addition to the above Magellan Homeloans transfer of equity Advice :

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 Magellan Homeloans 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 have a license to do so from the freeholder. If such conditions are not strictly observed you may be in breach 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 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 Magellan Homeloans 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 Magellan Homeloans 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 conveyancing.

Preparing the Transfer of Equity with a Magellan Homeloans 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 Magellan Homeloans 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.