Recently asked questions relating to Mortgage Agency Services transfer of equity
- I got my Decree Absolute four years ago. I simply never got around to change the ownership from the current 'joint' status to just in my name. I am ready to do that and so is she. Transfer-of-equity is needed. Mortgage Agency Services is happy to transfer the full equity in my name (financial checks done). Does she need any legal representation?
- What should I be budgeting for when it comes to what conveyancing fees are for a transfer of equity? I need to transfer equity and remortgage - new loan with Mortgage Agency Services - and have been quoted £250 including VAT by Mortgage Agency Services's appointed conveyancer, Is this is a good price or not?
- In 2012 I bought a house without my wife's name on the deeds. My conveyancer advised it is due to the fact that she is not in the mortgage with Mortgage Agency Services. Is it possible for me to add her name on the documents at HM Land Registry?
- I am in the process of removing a name from a joint mortgage and the Mortgage Agency Services require me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Winchelsea
conveyancer to deal with the transfer of equity? They need to be on the Mortgage Agency Services conveyancing panel.
- I own a flat in Wakefield
, with a Mortgage Agency Services mortgage with my former partner. Him and his fiance are going to acquire my share. We had consent from Mortgage Agency Services to replace my name with hers. The transfer of equity needs to be done by a lawyer for Mortgage Agency Services (supposedly). Is it possible for us to deal with the Land Registry change?
- My ex-partner and I are are looking to find a quality conveyancing lawyer to assist in a transfer of equity and remortgage with Mortgage Agency Services. I am aware of the risk of getting ripped off and there are lots of conveyancing organisations who do transfer of equity conveyancing out there...who's the best?
- My fiance and I jointly own a buy to let. I am a higher rate tax payer. Preferably I would like to do a transfer of equity into her name in order reduce our tax on rental income. If Mortgage Agency Services are happy with this the legal fees are inexpensive. What are the implications when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
Sample of information requested in a conveyancing solicitor questionnaire relating to Mortgage Agency Services Transfer of Equity
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Where you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?
Has one of the registered proprietors passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please provide a copy of your National Insurance Number?
Information to consider in supporting 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, provisions in 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 restrictions are not strictly observed you may be in violation 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 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 conveyancer 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 is dependent on the valuation of the property at finalisation of the transfer of equity transaction.
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 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.
