Questions and answers: ModaMortgages transfer of equity

• Have recently separated from my ex of twenty years. I'm now back with my mum and dad and she wants to remain in the property and pay me off. What portion am I entitled to. Is it 50% of the equity after paying off the mortgage with ModaMortgages? I assume proper valuations are necessary but I would like to be confident that I'm getting the best deal
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with ModaMortgages?
• I recently purchased a house without my fiance’s name on the ownership paperwork. My conveyancer claimed it is because she is not in the mortgage with ModaMortgages. Is it possible for me to add her name on the documents at HM Land Registry?
• What is the process for adding or removing names (transfer of equity) to or from my ModaMortgages mortgage account?
• What should I be budgeting for when it comes to what solicitors charges are for a transfer of equity? I'm in the process of remortgaging - moving over to ModaMortgages - and have been quoted £250 excluding VAT by ModaMortgages's appointed conveyancing solicitor, Have I been over quoted?
• Me and a friend got a joint mortgage with ModaMortgages on a property in 2013. I am now looking to get a flat by myself and my friend would like to buy me out. Assuming we can agree a figure where do we go? Is there likely to be any concerns with ModaMortgages with him being solely liable for the total loan as opposed to only half of it?
• I am disposing of my share of a property in Warwick to my co-owners fiance, they are reapplying to ModaMortgages. We are debating as to who should cover the charges for the transfer of equity. Should this be split or is one party liable for the costs of?

Information that may be required from your conveyancer may ask about your ModaMortgages Transfer of Equity

Information to consider in supporting the above ModaMortgages transfer of equity Info :

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 ModaMortgages conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in breach of the lease. This could potentially result in 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 conveyancing solicitor will check with ModaMortgages 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 ModaMortgages 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 valuation of the property at the time of completion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a ModaMortgages 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 ModaMortgages 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 contained within 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.