Mortgage Agency Services transfer of equity: q and a’s
- I am transferring my equity in house in Woodside to my co-owners husband, they are reapplying to Mortgage Agency Services. We are in heated discussion as to who must pay the charges for the transfer of equity. Should this be shared or is one party liable for the fees for?
- I am completing a Mortgage Agency Services transfer of equity request and have come to the questions regarding debts etc. I do some debts that I have been reducing since 2009, I understand that they have long since disappeared from my credit score. Do I need to set these out?
- I am looking for a conveyancer to deal with my transfer of equity. Mortgage Agency Services are dealing with the refinancing. I considered asking my mortgage broker. I am lead to believe he will likely get a kickback for suggesting a firm, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Is my logic correct?
- Can I transfer the equity held in my property with my Mortgage Agency Services home loan?
- My father passed away early last year leaving a unencumbered property to me and my brother in equal shared. Having continues to reside at the house, there was a clause in her will specifying that the premisescould not be sold for three years after her death so he could remain there for a specified time frame. He now says he would like to remain in the property beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the usual way to purchase my equity?
- What do I need to do when it comes adding or removing names (transfer of equity) to or from my Mortgage Agency Services mortgage account?
- Mortgage Agency Services have just agreed I can take over the mortgage on the flat. I have applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds as well?
Sample of questions in a conveyancer form concerning a Mortgage Agency Services Transfer of Equity
Please clarify if you are providing any payment for the Transfer of Equity and to whom and give details of the amount?
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?
Would you like us to draft you Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
Please provide the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Please provide the details of anyone to be extracted from the property title?
Important warnings to consider in supplemental the above Mortgage Agency Services transfer of equity Advice :
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 Mortgage Agency Services conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in violation 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 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 conclusion 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 conveyancing solicitor 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 conveyancer 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.
