Recently asked questions relating to The Mortgage Lender transfer of equity

• My ex are looking to get a conveyancer in place for a refinance with The Mortgage Lender. Transfer of Equity conveyancing is also requiredI have used the different comparison based tools and the results are from all over the country. Do we need to have a conveyancing solicitor local to us?
• How much the typical legal fees are for a transfer of equity? I need to transfer equity and refinance - moving over to The Mortgage Lender - and have been quoted Three Hundred pounds excluding VAT by The Mortgage Lender's appointed conveyancer, Have I been over quoted?
• I acquired a house with my brother five.seven years ago Since then, we have both got married. We are now intending to do a transfer of equity so my name comes off the The Mortgage Lender mortgage. There is a meaningful difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
• I already have a home loan with The Mortgage Lender and am maintaining my existing mortgaging but applying to have it in my name alone so my former partner won't be on it any longer. How long do The Mortgage Lender take to process the application?
• As things stand I have a joint The Mortgage Lender mortgage with my brother and am looking into the possibility of him assuming responsibility for the whole mortgage and extracting myself from it, to enable me to purchase a property with my partner. The outstanding mortgage is approx 300k, and the property value is about 450k. Is this a transfer of equity? Is stamp duty involved?
• I am completing a The Mortgage Lender transfer of equity request and have come to the part that asks about defaults etc. There are some debts that I have been reducing for a number of years, in fact they have long since disappeared from my credit score. Do I need to set these out?
• I am under the impression we would need at least AP1 and Transfer Deed. Is this true?

Sample of information requested in a lawyer questionnaire concerning a The Mortgage Lender Transfer of Equity

Important warnings to consider in supporting the above The Mortgage Lender transfer of equity Questions and Answers :

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 Lender 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 obtain the consent of the landlord. If such terms are not adhered to 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 lawyer will check with The Mortgage Lender 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 Lender 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.

Preparing the Transfer of Equity with a The Mortgage Lender 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 Lender 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 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.