Questions and answers: Molo Finance Buy to Let transfer of equity

• I own a apartment in Friern Barnet , with a Molo Finance Buy to Let mortgage with my ex partner. Him and his new partner are going to acquire my share. We had the go ahead from Molo Finance Buy to Let to substitute my name with hers. The transfer of equity needs to be done by a lawyer for Molo Finance Buy to Let (apparently). Can we do the Land Registry formalities?
• I got divorced two years ago. Foolishly I never got around to change the ownership from the current 'joint' status to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Molo Finance Buy to Let is happy to transfer the full equity in my name (affordability checks done). Does she need a lawyer?
• My current mortgage is with Molo Finance Buy to Let. Can I transfer equity to someone under eighteen years old?
• I am answering a Molo Finance Buy to Let transfer of equity application and have come to the questions concerning defaults etc. There are some debts that I have been clearing over a long period, I understand that they no longer remain my credit score. Must I set these out?
• What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my Molo Finance Buy to Let mortgage account?
• Can I transfer the equity held in my property with my Molo Finance Buy to Let home loan?
• I am transferring my equity in property in Woodside to the other co-owners husband, they are sticking with Molo Finance Buy to Let being the the existing lender. We are in heated discussion as to who should cover the costs of the transfer of equity. Is this normally shared or is one party liable for the costs of?

Information that may be required from your conveyancing solicitor could ask regarding your Molo Finance Buy to Let Transfer of Equity

Information to consider in further to the above Molo Finance Buy to Let transfer of equity Questions and Answers :

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 Molo Finance Buy to Let 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 landlord. If such terms are not adhered to you may be in violation 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 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 varies based on the valuation 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.

Content 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.