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Thomas
Thomas, Solicitor
Category: Property Law
Satisfied Customers: 7602
Experience:  UK solicitor holding an England and Wales practising Certificate.
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Is it absolutely complsory at all circumstances to apply for

Resolved Question:

is it absolutely complsory at all circumstances to apply for a remortgage over the existing mortgage in order to complete the transfer of equity (change of ownership)?
Or is it not complusory to get a new mortgage/remortgage on the same property if desiring to get a transfer of equity completed?
Can I get the transfer of equity done without the need for having a new mortgage or remortgage?
Some brokers and banks say (or suggest) that you should get a remortgage done if wishing to have a transfer of equity done whilst others have got other opinions. I am very confused. Please help me.
Submitted: 11 months ago.
Category: Property Law
Expert:  Thomas replied 11 months ago.

Hi

Thanks for your question. I will try to help.

Your current lender has a first legal charge which prevents transfers of equity (ie. changes in the ownership of the property) without their consent.

Therefore, the transfer of equity cannot be registered unless your lender agrees to it.

The lender may decide to provide your conveyancer with a Consent To Transfer document which allows the transfer of equity to occur but with your current mortgage staying the same in all other respect. This is slightly different and easier than a remortgage, but is less common.

More often the lender will require a remortgage to occur at the same time whereby a mortgage offer is issued to the transferees (ie. the person or persons who will own the property after the transfer of equity), this is generally what happens and is a remortgage.

So, a remortgage is the most common thing and it is compulsory where your current lender is not willing to proceed with a simple Consent to Transfer (which is entirely at their discretion)

My goal is to provide you with a good service. If you feel you have received anything less, please reply back. Please remember to leave positive feedback using the stars at the top of the page.

Kind regards,

Tom

Customer: replied 11 months ago.
Thank you for your reply but I am still confused. So as I understand that the only way forward to get the transfer of equity done is by having a remortgage, is that correct, if so, does that mean we would simply have to apply for a brand new loan for mortgage from a bank or building society, and will we be required to then get a surveyor to check the current value (valuation) of the property) and then have to go through mortgage offer with the lender in order to get the transfer of equity task (change of ownership) completed, is that correct also?Secondly even if we have to apply for a new loan for remortgaging, is this possible to do with the current existing lender or do we have to get a new loan for remortgaging from a brand new lender (bank or mortgage lender)?And finally, if the current lender does not provide a agree with Consent to Transfer of Equity under their discretion, does that mean there is no other ways to get a transfer of equity done except by means of remortgaging?
Expert:  Thomas replied 11 months ago.

Hi

Your transfer of equity can only proceed without a remortgage if your current lender is willing to provide you with a letter of consent. If they are not willing to provide you with a letter of consent then you will have to remortgage, either with them or with a different lender.

A new valuation of the property by a surveyor would have to be carried out in the event of a remortgage.

Please remember to leave feedback.

Tom

Customer: replied 11 months ago.
Our existing current lender is Birmingham Midshires (BM). On their websites, it mentions about transfer of equity but for Buy to Let or Let to Buy. But the property we brought was for ourselves to live in and not for Buy to Let or Let to Buy. Do you know whether BM will still allow us to do a transfer of equity whilst keeping them as their current lender and avoiding going to other lenders and especially since we did not obtain the mortgage from BM on our property for But to Let or Let to Buy purposes? Please feel free to contact BM on this issue if necessary.I came across some websites below that may be of interest to you and may help you provide an answer to my queries: Click on to briefly view:
www.bmsolutions.co.uk/pdf/transfer_of_equity_application_form.pdfwww.bmsolutions.co.uk/pdf/transfer_of_equity_guide.pdfhttp://www.transfer-of-equity.help/ew/birmingham-midshireshttps://www.google.co.uk/?gfe_rd=cr&ei=s6ysV53tHKPS8Aeu3qPgAg&safe=vss&gws_rd=ssl#safe=vss&q=birmingham+midshires+transfer+of+equity
Expert:  Thomas replied 11 months ago.

Hi

I have answered your original question. If you have specific concerns about your lender then you must contact a solicitor directly in person, who will deal with the transfer of equity and any re-mortgage appropriately.

It may be that your lender offered residential mortgages when you originally took your mortgage, but does now not do so. If this is the case then you would have to re-mortgage with another lender.

If they no longer offer residential mortgages and are not willing to provide a simple consent to let then you would have to re-mortgage with a different high street lender and a mortgage broker would be able to source a normal high street mortgage for you.

Please leave feedback now, you will agree I have answered your original question.

Regards

Tom

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