Molo Finance Buy to Let transfer of equity: q and a’s

• I acquired a flat with my cousin six years ago Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Molo Finance Buy to Let mortgage. There is a significant difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
• My current home loan is with Molo Finance Buy to Let. Can I transfer equity to someone less than 18 years old?
• At what point do I incur stamp duty payable for the transfer of equity in my home in my name alone which is taking place at the same time as a switching mortgage via Molo Finance Buy to Let?
• Last year purchased a apartment without my wife's name on the title documents. My conveyancer advised it is because she is not in the mortgage with Molo Finance Buy to Let. I'm wondering is there any way that I can add her name on the title?
• Do I need legal advice when doing a transfer of equity where the home loan is to remain with Molo Finance Buy to Let?
• Law month I separated from my partner of twenty years. I'm now living with my parents again and she wishes to stay in the flat and buy me out. What portion do I get. Is it half of the equity after redeeming the mortgage with Molo Finance Buy to Let? I assume proper valuations are required but I would like ensure that I'm getting the best deal
• I own a apartment in Wakefield , with a Molo Finance Buy to Let loan with my ex husband. He and his new partner are going to acquire my share. We had consent from Molo Finance Buy to Let to replace my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Molo Finance Buy to Let (apparently). Can we do the Land Registry formalities?

Examples of information requested in a conveyancing solicitor questionnaire relating to Molo Finance Buy to Let Transfer of Equity

Important warnings to consider in supporting the above Molo Finance Buy to Let transfer of equity Info :

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 Molo Finance Buy to Let conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

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 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 as a result of 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 conveyancer will check with Molo Finance Buy to Let 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 Molo Finance Buy to Let 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 Molo Finance Buy to Let 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 Molo Finance Buy to Let 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 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.