Questions and answers: Rooftop Mortgages transfer of equity
- What are my options where I am not happy with the conveyancer who carried out my transfer of equity conveyancing?
- I got my Decree Absolute in 2012. Foolishly I never got around to change the ownership from both our names to just in my name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Rooftop Mortgages is willing to transfer the full equity in my name (affordability checks done). Does she need a lawyer?
- I am selling my equity in apartment in Birmingham to the other co-owners husband, they are sticking with Rooftop Mortgages as the the existing mortgage company. We are debating as to who must cover the fees for the transfer of equity. Should this be split or is one party obliged to cover the costs of?
- My divorce has gone through as is the consent order. Now I must sort out the transfer of equity at the HMLR and the Rooftop Mortgages home loan. I have called Rooftop Mortgages for the transfer of equity forms. What are my next steps?
- My partner and I equally own a BTL. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity to her sole name with a view to mitigate tax on the letting income. Assuming Rooftop Mortgages are content with this the legal fees are not high. What are the implications when we sell? As I would no longer be on the title documents would I lose my CGT relief.
- Is stamp duty payable when it comes to an transfer of equity with a mortgage with Rooftop Mortgages?
- I am in the process of removing a name from a joint mortgage and the Rooftop Mortgages need me to use a conveyancer to carry out the conveyancing. Can you recommend a reasonably priced Crabtree
conveyancing solicitor to deal with the transfer of equity? They need to be on the Rooftop Mortgages conveyancing panel.
Questions that your conveyancer is likely to ask regarding your Rooftop Mortgages 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” Questionnaire.
Please give the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Please give the details of anyone to be added to the title deeds?
Please list all persons who occupy the property, their respective ages and relationships to you.
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Would you like us to draft you Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Important warnings to consider in further to the above Rooftop Mortgages 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 Rooftop Mortgages conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
If your property is 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 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 conveyancing solicitor will check with Rooftop Mortgages 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 Rooftop Mortgages 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 the time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Rooftop Mortgages your property may be repossessed.
Preparing the Transfer of Equity with a Rooftop Mortgages 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 Rooftop Mortgages 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.
