Questions and answers: Mortgage Agency Services transfer of equity
- Have recently split up with my ex of thirty years. I'm now back with my mum and dad and she wishes to remain in the property and pay me off. What percentage do I get. Is it 50% of the equity after paying off the Mortgage Agency Services home loan? I assume proper valuations are necessary but I would like ensure that I'm getting the best deal
- As things stand I have a joint Mortgage Agency Services mortgage with my step-brother and am investigating the feasibility of him assuming responsibility for the whole mortgage and removing myself from it, so as to enable me to purchase a place with my partner. The outstanding mortgage is about 200k, and the property value is approx 600k. Is this a transfer of equity? Is land tax due?
- What if my application doesn't meet Mortgage Agency Services lending criteria for a transfer of equity?
- Me and my former fiance and I are in the market for a quality conveyancing solicitor to assist in a transfer of equity and remortgage with Mortgage Agency Services. I I am concerned about by bill escalating out of control and there are many conveyancing firms who do transfer of equity conveyancing out there...how do I know which to select?
- I already have a mortgage with Mortgage Agency Services and am retaining my current mortgaging but applying to have have the equity transferred to my sole name so my ex won't be on it any longer. How long do Mortgage Agency Services take to process the application?
- My divorce is through as is the consent order. Now I need to address the transfer of equity on title deeds and the Mortgage Agency Services home loan. I have contacted Mortgage Agency Services for the transfer of equity forms. What are my next steps?
- What legal advice do I need when doing a transfer of equity where the home loan is to remain with Mortgage Agency Services?
Sample of questions in a lawyer form concerning a Mortgage Agency Services Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Who will be responsible for the costs of the Transfer of Equity?
Where you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Caveats to be read in supplemental the above Mortgage Agency Services 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 Mortgage Agency Services 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 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 Mortgage Agency Services 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 Mortgage Agency Services 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.
If you do not keep up the payments on your mortgage with Mortgage Agency Services your property may be repossessed.
Preparing the Transfer of Equity with a Mortgage Agency Services 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 Mortgage Agency Services 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.
Information contained within 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.
