Transfer of Equity - with a friend.

TheCaspie

Hi there
I am hoping someone can help.

I own two properties with a friend. Joint mortgages on both.

He has agreed - because I need to pay elderly parents back (their mortgage needs paying off and I have the money they need to do that!) and payoff small debt - to me coming off the title deeds and he remortgaging on his own.

He has been offered a mortgage but only 60% LTV.
I have agreed (as it would be enough) to accept the amount that is left after paying off our current joint mortgage as way of payment for my share of the equity.

I cannot because of credit rating issues stay on a remortgage as it would be refused. I need the cash so we have agreed this way forward. I am totally aware that signing the property over to him will mean I have no rights to it or the equity as we move forward.

Obviously the transfer of equity is below market value and his solicitor is wanting to know why I am accepting this offer. They are also asking that I get a solicitor to do the transfer. I wanted to save money by doing this myself as it is just a TR1 form that needs filled in, signed and returned before the transfer can happen.

They have asked that I write them a letter stating that I am aware of what I am doing in terms of accepting less than marketing value and that I understand the ramifications of removing my name from the title deeds and why I am doing this. They MAY then accept that I do not need a solicit.

There are still no guarantees that they will be ok for me not to have a solicitor however, and I wondered if you knew if they can force this issue and if so - how much will it cost me to do this? As my friend's solicitor is doing all of the paperwork a solicitor for me would not have to do very much? I really don't want to be paying more money to a solicitor for no real reason?

There is no dispute between my friend and me - our second property is remaining as a joint mortgage and any remaining equity can be resolved with that or by my friend paying me off in another way. We are happy for this to go ahead.

What thoughts? Thanks

amnblog

This is PMA on their part and they are within their rights to insist you get an independent legal opinion.

Senior_Paper_Monitor

If by making the transfer you are jeopardising your ability to meet other liabilities then you may well be committing a criminal offence.


The solicitor does not wish (and will not risk) being culpable for that - similarly the will not risk entering into a transaction that may be overturned on the basis of the above.

TheCaspie

I am not making the transfer to avoid meeting liabilities but instead to pay off everything that I need to so that is not an issue.

Thanks for the advice.