The Mortgage Business transfer of equity example support desk enquires
- I am am in need of a conveyancer to handle my transfer of equity. The Mortgage Business are dealing with the remortgage. I thought of asking my financial adviser. I understand he will likely get a kickback for recommending a firm, but also of benefit will be that he knows the lawyer, has dealt with them before. Any flaws you see in this way of thinking?
- My former wife are seeking to get a conveyancing solicitor in place for a new mortgage with The Mortgage Business. Transfer of Equity conveyancing is also necessaryI have used the different comparison based websites and the results are from all over the country. How necessary is it to have a conveyancer local to us?
- Having been 3 years apart I have opted to relinquish up my share of the house to my husband who is refinancing with The Mortgage Business. Can a transfer of equity be completed in four weeks?
- I got divorced two years ago. I simply never got around to transfer ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. The Mortgage Business is content to transfer the property and loan in my name (financial checks done). Does my ex need a lawyer?
- My mother passed away early last year leaving a loan-free bungalow to me and my brother in equal shared. Having continues to reside at the property, there was a clause in her will specifying that the premisescould not be sold for three years after her passing so he could continue to live there for a prescribed period. He now wishes to remain in the premises beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the traditional way to buy my share?
- I already have a home loan with The Mortgage Business and am maintaining my current mortgaging but applying to have it in my name only so my ex will no longer be on the title. How long can it take for the paperwork to be processed?
- At what stage do I incur stamp duty chargeable for the transfer of equity in my home in my name alone which is taking place at the same time as a remortgage via The Mortgage Business?
Information that may be required from your conveyancer may ask about your The Mortgage Business Transfer of Equity
If you are adding someone 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.
Has consent been obtained from The Mortgage Business to the proposed transfer of equity?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Will there be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what amounts
Would you like us to draw up a Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Has one of the registered owners died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Caveats to be read in supporting the above The Mortgage Business 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 The Mortgage Business conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed 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 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 The Mortgage Business 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 The Mortgage Business 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 transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with The Mortgage Business.
Preparing the Transfer of Equity with a The Mortgage Business 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 The Mortgage Business 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.
