Frequently asked questions relating to The Mortgage Works transfer of equity

• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with The Mortgage Works?
• Can I apply to request more money from The Mortgage Works as part of a Transfer of Equity?
• Law month I split up with my ex of twenty years. I'm now back with my parents again and she wants to remain in the flat and buy me out. What percentage do I get. Is it 50% of the equity after discharging the mortgage with The Mortgage Works? I assume proper valuations are required but I really need to be sure that I'm getting what I am entitled to
• Me and my former fiance and I are in the market for an affordable conveyancing lawyer to help me sell in a transfer of equity and refinance with The Mortgage Works. I I am fearful of by bill escalating out of control and there are so many conveyancing practices who do transfer of equity conveyancing out there...how do I know which one is best appoint?
• My decree absolute has gone through as is the consent order. Now I have to address the transfer of equity for the property and the The Mortgage Works home loan. I have asked The Mortgage Works for the transfer of equity forms. What are my next steps?
• I already have a home loan with The Mortgage Works and am retaining my existing mortgaging but seeking to have it in my name only so my ex will be removed from the mortgage. How long do The Mortgage Works take to process the application?
• Two years ago I purchased a house without my wife's name on the title documents. My conveyancing solicitor advised it is due to the fact that she is not in the loan offer with The Mortgage Works. Is it possible for me to put her name on the title?

Questions that your lawyer may ask regarding your The Mortgage Works Transfer of Equity

Information to consider in further to the above The Mortgage Works transfer of equity information :

Tax and Legal

There may be various tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the The Mortgage Works conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

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 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 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 conveyancing solicitor will check with The Mortgage Works 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 Works 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 market value of the property at the conclusion of the transfer of equity transaction.

Preparing the Transfer of Equity with a The Mortgage Works 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 Works 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 conveyancing solicitor 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.