Top seven questions relating to Together Personal Finance transfer of equity

• What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my Together Personal Finance mortgage account?
• What legal advice do I need when doing a transfer of equity where the home loan is to remain with Together Personal Finance?
• I jointly own a apartment in Sedgefield , with a Together Personal Finance mortgage with my ex partner. He and his fiance are going to buy me out. We had approval from Together Personal Finance to remove my name with hers. The transfer of equity has to be completed by a conveyancer for Together Personal Finance (supposedly). In order to save fees can I deal with the Land Registry formalities?
• What if my application doesn't meet Together Personal Finance lending criteria for a transfer of equity?
• My mother passed away half a year ago leaving a unencumbered property to me and my step brother equally. He has always lived in the property, there was a clause in her will specifying that the propertycould not be sold for three years after her passing so he could continue to live there for a specified time frame. He now wants to remain in the property beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the conventional way to acquire my share?
• Can I apply to borrow a further advance from Together Personal Finance as part of a Transfer of Equity?
• My Together Personal Finance mortgage is in joint names with ex, he is agreeable to be removed and let me have the property. Together Personal Finance will permit the transfer of equity to me solely. Will Together Personal Finance call my boss to confirm my salary?

Information that may be required from your conveyancing solicitor could ask in relation to your Together Personal Finance Transfer of Equity

Caveats to be read in supplemental the above Together Personal Finance 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 Together Personal Finance conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from 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 pursuant to 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 Together Personal Finance 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 Together Personal Finance 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 conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Together Personal Finance 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 Together Personal Finance 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 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.