Questions and answers: Masthaven Bank transfer of equity

• Is it sensible to stop the direct debit for my mortgage with Masthaven Bank as soon as a date for my remortgage and transfer of equity has been agreed?
• I am considering remortgaging my property in Friern Barnet does my lawyer need to be on the Masthaven Bank Conveyancing panel. The conveyancing also involves a transfer of equity.
• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Masthaven Bank?
• I co-own a apartment in Wakefield , with a Masthaven Bank mortgage with my ex husband. He and his fiance are going to buy me out. We had the go ahead from Masthaven Bank to substitute my name with hers. The transfer of equity needs to be done by a lawyer for Masthaven Bank (apparently). Is it possible for us to deal with the Land Registry formalities?
• My financial adviser has suggested using their conveyancing solicitor for the Transfer of Equity plus remortgage with Masthaven Bank - Is it not simpler better to just instruct them?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Masthaven Bank?
• I am trying to find a lawyer to undertake my transfer of equity. Masthaven Bank are dealing with the refinancing. I considered asking my mortgage broker. I understand he may get a referral fee for recommending a firm, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Any flaws you see in this way of thinking?

Information that may be required from your conveyancer is likely to ask regarding your Masthaven Bank Transfer of Equity

Information to consider in in addition to the above Masthaven Bank 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 Masthaven Bank 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 require 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 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 lawyer will check with Masthaven Bank 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 Masthaven Bank 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 time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Masthaven Bank 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 Masthaven Bank 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.