Questions and answers: West Bromwich Mortgage Company transfer of equity

• Do I need legal advice when doing a transfer of equity where the home loan is to remain with West Bromwich Mortgage Company?
• My partner and myself equally own a buy to let. I am a top rate tax payer. Ideally I would like to do a transfer of equity to her sole name with a view to reduce our tax on rental income. Assuming West Bromwich Mortgage Company are fine with this the legal fees are not prohibitive. However what happens when we dispose of the property? Would my GGT relief be lost.
• The financial adviser has suggested using their lawyer for the Transfer of Equity plus remortgage with West Bromwich Mortgage Company - Surely it’s advisable to just instruct them?
• As things stand I have a joint West Bromwich Mortgage Company mortgage with my step-brother and am investigating the option of him assuming responsibility for the outstanding mortgage and removing myself from it, to enable me to purchase a place with my fiance. The remaining mortgage is approx 200k, and the property value is about 500k. Is this a transfer of equity? Is stamp duty payable?
• I am in the process of removing a name from a joint mortgage and the West Bromwich Mortgage Company require me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Littleborough conveyancing solicitor to deal with the transfer of equity? They need to be on the West Bromwich Mortgage Company conveyancing panel.
• At what stage do I cover the costs of stamp duty chargeable for the transfer of equity in my home in my name alone which is happening simultaneously with a refinancing via West Bromwich Mortgage Company?
• Is it possible to apply to borrow a further advance from West Bromwich Mortgage Company as part of a Transfer of Equity?

Examples of information requested in a conveyancer questionnaire relating to West Bromwich Mortgage Company Transfer of Equity

Caveats to be read in in addition to the above West Bromwich Mortgage Company transfer of equity Advice :

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 West Bromwich Mortgage Company 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 have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not complied with 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 lawyer will check with West Bromwich Mortgage Company 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 West Bromwich Mortgage Company 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 time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a West Bromwich Mortgage Company Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If West Bromwich Mortgage Company 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.

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.