diff --git a/libs/application/template-api-modules/src/lib/modules/templates/aosh/transfer-of-machine-ownership/emailGenerators/applicationDeleteEmail.ts b/libs/application/template-api-modules/src/lib/modules/templates/aosh/transfer-of-machine-ownership/emailGenerators/applicationDeleteEmail.ts
new file mode 100644
index 000000000000..054a234a6957
--- /dev/null
+++ b/libs/application/template-api-modules/src/lib/modules/templates/aosh/transfer-of-machine-ownership/emailGenerators/applicationDeleteEmail.ts
@@ -0,0 +1,80 @@
+import { Message } from '@island.is/email-service'
+import { EmailTemplateGeneratorProps } from '../../../../../types'
+import { EmailRecipient } from '../types'
+import { pathToAsset } from '../transfer-of-machine-ownership.utils'
+import { ApplicationConfigurations } from '@island.is/application/types'
+import { TransferOfMachineOwnershipAnswers } from '@island.is/application/templates/aosh/transfer-of-machine-ownership'
+
+export type ApplicationRejectedEmail = (
+  props: EmailTemplateGeneratorProps,
+  recipient: EmailRecipient,
+  rejectedBy: EmailRecipient | undefined,
+) => Message
+
+export const generateApplicationRejectedEmail: ApplicationRejectedEmail = (
+  props,
+  recipient,
+  rejectedBy,
+): Message => {
+  const {
+    application,
+    options: { email, clientLocationOrigin },
+  } = props
+  const answers = application.answers as TransferOfMachineOwnershipAnswers
+  const regNumber = answers?.machine?.regNumber
+
+  if (!recipient.email) throw new Error('Recipient email was undefined')
+  if (!regNumber) throw new Error('Registration Number was undefined')
+  if (!rejectedBy?.ssn) throw new Error('Rejected by ssn was undefined')
+
+  const subject = 'Tilkynning um eigendaskipti - Umsókn afturkölluð'
+
+  return {
+    from: {
+      name: email.sender,
+      address: email.address,
+    },
+    to: [{ name: recipient.name, address: recipient.email }],
+    subject,
+    template: {
+      title: subject,
+      body: [
+        {
+          component: 'Image',
+          context: {
+            src: pathToAsset('logo.jpg'),
+            alt: 'Ísland.is logo',
+          },
+        },
+        {
+          component: 'Image',
+          context: {
+            src: pathToAsset('computerIllustration.jpg'),
+            alt: 'Kaffi við skjá myndskreyting',
+          },
+        },
+        {
+          component: 'Heading',
+          context: { copy: subject },
+        },
+        {
+          component: 'Copy',
+          context: {
+            copy:
+              `<span>Góðan dag,</span><br/><br/>` +
+              `<span>Beiðni um eigendaskipti á tækinu ${regNumber} hefur verið afturkölluð þar sem eigandi ökutækis eyddi umsókninni.</span><br/>` +
+              `<span>Til þess að skrá eigendaskiptin rafrænt verður að byrja ferlið að upp á nýtt á umsóknarvef island.is: island.is/umsoknir, ásamt því að allir aðilar þurfa að staðfesta rafrænt innan gefins tímafrests.</span><br/>` +
+              `<span>Vinsamlegast hafið samband við Vinnueftirlitið vinnueftirlit@ver.is ef nánari upplýsinga er þörf.</span>`,
+          },
+        },
+        {
+          component: 'Button',
+          context: {
+            copy: 'Skoða umsókn',
+            href: `${clientLocationOrigin}/${ApplicationConfigurations.TransferOfMachineOwnership.slug}/${application.id}`,
+          },
+        },
+      ],
+    },
+  }
+}
diff --git a/libs/application/template-api-modules/src/lib/modules/templates/aosh/transfer-of-machine-ownership/transfer-of-machine-ownership.service.ts b/libs/application/template-api-modules/src/lib/modules/templates/aosh/transfer-of-machine-ownership/transfer-of-machine-ownership.service.ts
index fba8b32860bb..6c0461d6d887 100644
--- a/libs/application/template-api-modules/src/lib/modules/templates/aosh/transfer-of-machine-ownership/transfer-of-machine-ownership.service.ts
+++ b/libs/application/template-api-modules/src/lib/modules/templates/aosh/transfer-of-machine-ownership/transfer-of-machine-ownership.service.ts
@@ -30,6 +30,7 @@ import {
   MachinesWithTotalCount,
   WorkMachinesClientService,
 } from '@island.is/clients/work-machines'
+import { User } from '@island.is/auth-nest-tools'
 @Injectable()
 export class TransferOfMachineOwnershipTemplateService extends BaseTemplateApiService {
   constructor(
@@ -270,6 +271,101 @@ export class TransferOfMachineOwnershipTemplateService extends BaseTemplateApiSe
     return null
   }
 
+  private async deleteOwnerChange(
+    auth: User,
+    applicationId: string,
+  ): Promise<void> {
+    try {
+      const deleteChange = {
+        ownerchangeId: applicationId,
+        xCorrelationID: applicationId,
+      }
+      await this.workMachineClientService.deleteOwnerChange(auth, deleteChange)
+    } catch (error) {
+      this.logger.error(
+        `Failed to delete owner change for application ${applicationId}`,
+        error,
+      )
+      throw error
+    }
+  }
+
+  async deleteApplication({
+    application,
+    auth,
+  }: TemplateApiModuleActionProps): Promise<void> {
+    // 1. Delete charge so that the seller gets reimburshed
+    const chargeId = getPaymentIdFromExternalData(application)
+    try {
+      if (chargeId) {
+        await this.chargeFjsV2ClientService.deleteCharge(chargeId)
+      }
+    } catch (error) {
+      this.logger.error(
+        `Failed to delete charge ${chargeId} for application ${application.id}`,
+        error,
+      )
+      throw error
+    }
+
+    // 2. Delete owner change in work machines
+    await this.deleteOwnerChange(auth, application.id)
+
+    // 3. Notify everyone in the process that the application has been withdrawn
+
+    // 3a. Get list of users that need to be notified
+    const answers = application.answers as TransferOfMachineOwnershipAnswers
+    const recipientList = getRecipients(answers, [
+      EmailRole.seller,
+      EmailRole.buyer,
+    ])
+
+    // 3b. Send email/sms individually to each recipient about success of withdrawing application
+    const deletedByRecipient = getRecipientBySsn(answers, auth.nationalId)
+    for (let i = 0; i < recipientList.length; i++) {
+      if (recipientList[i].email) {
+        await this.sharedTemplateAPIService
+          .sendEmail(
+            (props) =>
+              generateApplicationRejectedEmail(
+                props,
+                recipientList[i],
+                deletedByRecipient,
+              ),
+            application,
+          )
+          .catch((e) => {
+            this.logger.error(
+              `Error sending email about deleteApplication in application: ID: ${application.id}, 
+            role: ${recipientList[i].role}`,
+              e,
+            )
+          })
+      }
+
+      if (recipientList[i].phone) {
+        await this.sharedTemplateAPIService
+          .sendSms(
+            () =>
+              generateApplicationRejectedSms(
+                application,
+                recipientList[i],
+                deletedByRecipient,
+              ),
+            application,
+          )
+          .catch((e) => {
+            this.logger.error(
+              `Error sending sms about deleteApplication to 
+              a phonenumber in application: ID: ${application.id}, 
+              role: ${recipientList[i].role}`,
+              e,
+            )
+          })
+      }
+    }
+  }
+
   async rejectApplication({
     application,
     auth,
@@ -280,16 +376,19 @@ export class TransferOfMachineOwnershipTemplateService extends BaseTemplateApiSe
       await this.chargeFjsV2ClientService.deleteCharge(chargeId)
     }
 
-    // 2. Notify everyone in the process that the application has been withdrawn
+    // 2. Delete owner change in work machines
+    await this.deleteOwnerChange(auth, application.id)
+
+    // 3. Notify everyone in the process that the application has been withdrawn
 
-    // 2a. Get list of users that need to be notified
+    // 3a. Get list of users that need to be notified
     const answers = application.answers as TransferOfMachineOwnershipAnswers
     const recipientList = getRecipients(answers, [
       EmailRole.seller,
       EmailRole.buyer,
     ])
 
-    // 2b. Send email/sms individually to each recipient about success of withdrawing application
+    // 3b. Send email/sms individually to each recipient about success of withdrawing application
     const rejectedByRecipient = getRecipientBySsn(answers, auth.nationalId)
     for (let i = 0; i < recipientList.length; i++) {
       if (recipientList[i].email) {
diff --git a/libs/application/templates/aosh/transfer-of-machine-ownership/src/dataProviders/index.ts b/libs/application/templates/aosh/transfer-of-machine-ownership/src/dataProviders/index.ts
index 2eae2dfba990..9a1c83d1024c 100644
--- a/libs/application/templates/aosh/transfer-of-machine-ownership/src/dataProviders/index.ts
+++ b/libs/application/templates/aosh/transfer-of-machine-ownership/src/dataProviders/index.ts
@@ -1,6 +1,7 @@
 import {
   defineTemplateApi,
   InstitutionNationalIds,
+  MockablePaymentCatalogApi,
   PaymentCatalogApi,
 } from '@island.is/application/types'
 
@@ -13,6 +14,14 @@ export const VinnueftirlitidPaymentCatalogApi = PaymentCatalogApi.configure({
   externalDataId: 'payment',
 })
 
+export const MockableVinnueftirlitidPaymentCatalogApi =
+  MockablePaymentCatalogApi.configure({
+    params: {
+      organizationId: InstitutionNationalIds.VINNUEFTIRLITID,
+    },
+    externalDataId: 'payment',
+  })
+
 export const MachinesApi = defineTemplateApi({
   action: 'getMachines',
   externalDataId: 'machinesList',
diff --git a/libs/application/templates/aosh/transfer-of-machine-ownership/src/forms/TransferOfMachineOwnershipForm/prerequisitesSection.ts b/libs/application/templates/aosh/transfer-of-machine-ownership/src/forms/TransferOfMachineOwnershipForm/prerequisitesSection.ts
index c64528d5dd94..c8e665c5b23c 100644
--- a/libs/application/templates/aosh/transfer-of-machine-ownership/src/forms/TransferOfMachineOwnershipForm/prerequisitesSection.ts
+++ b/libs/application/templates/aosh/transfer-of-machine-ownership/src/forms/TransferOfMachineOwnershipForm/prerequisitesSection.ts
@@ -11,6 +11,7 @@ import {
   UserProfileApi,
   VinnueftirlitidPaymentCatalogApi,
   MachinesApi,
+  MockableVinnueftirlitidPaymentCatalogApi,
 } from '../../dataProviders'
 import { DefaultEvents } from '@island.is/application/types'
 
@@ -56,6 +57,10 @@ export const prerequisitesSection = buildSection({
           provider: VinnueftirlitidPaymentCatalogApi,
           title: '',
         }),
+        buildDataProviderItem({
+          provider: MockableVinnueftirlitidPaymentCatalogApi,
+          title: '',
+        }),
       ],
     }),
   ],
diff --git a/libs/application/templates/aosh/transfer-of-machine-ownership/src/lib/TransferOfMachineOwnershipTemplate.ts b/libs/application/templates/aosh/transfer-of-machine-ownership/src/lib/TransferOfMachineOwnershipTemplate.ts
index f9ddc0ef0d61..e781e54c654c 100644
--- a/libs/application/templates/aosh/transfer-of-machine-ownership/src/lib/TransferOfMachineOwnershipTemplate.ts
+++ b/libs/application/templates/aosh/transfer-of-machine-ownership/src/lib/TransferOfMachineOwnershipTemplate.ts
@@ -30,6 +30,7 @@ import {
   UserProfileApi,
   VinnueftirlitidPaymentCatalogApi,
   MachinesApi,
+  MockableVinnueftirlitidPaymentCatalogApi,
 } from '../dataProviders'
 import { getChargeItemCodes, hasReviewerApproved } from '../utils'
 import { buildPaymentState } from '@island.is/application/utils'
@@ -138,6 +139,7 @@ const template: ApplicationTemplate<
               api: [
                 IdentityApi,
                 UserProfileApi,
+                MockableVinnueftirlitidPaymentCatalogApi,
                 VinnueftirlitidPaymentCatalogApi,
                 MachinesApi,
               ],
@@ -214,6 +216,9 @@ const template: ApplicationTemplate<
         meta: {
           name: 'Tilkynning um eigendaskipti að ökutæki',
           status: 'inprogress',
+          onDelete: defineTemplateApi({
+            action: ApiActions.deleteApplication,
+          }),
           actionCard: {
             tag: {
               label: applicationMessage.actionCardDraft,
diff --git a/libs/application/templates/aosh/transfer-of-machine-ownership/src/shared/constants.ts b/libs/application/templates/aosh/transfer-of-machine-ownership/src/shared/constants.ts
index 306b908dd811..f058593ec11e 100644
--- a/libs/application/templates/aosh/transfer-of-machine-ownership/src/shared/constants.ts
+++ b/libs/application/templates/aosh/transfer-of-machine-ownership/src/shared/constants.ts
@@ -2,4 +2,5 @@ export enum ApiActions {
   initReview = 'initReview',
   rejectApplication = 'rejectApplication',
   submitApplication = 'submitApplication',
+  deleteApplication = 'deleteApplication',
 }
diff --git a/libs/clients/work-machines/src/clientConfig.json b/libs/clients/work-machines/src/clientConfig.json
index ff3603c2a394..eec50c7450b0 100644
--- a/libs/clients/work-machines/src/clientConfig.json
+++ b/libs/clients/work-machines/src/clientConfig.json
@@ -256,16 +256,17 @@
         }
       }
     },
-    "/api/MachineParentCategories": {
-      "get": {
-        "tags": ["MachineParentCategories"],
+    "/api/MachineOwnerChange/{OwnerchangeId}": {
+      "delete": {
+        "tags": ["MachineOwnerChange"],
         "parameters": [
           {
-            "name": "locale",
-            "in": "query",
+            "name": "OwnerchangeId",
+            "in": "path",
+            "required": true,
             "schema": {
               "type": "string",
-              "default": "is"
+              "format": "uuid"
             }
           },
           {
@@ -278,6 +279,27 @@
             }
           }
         ],
+        "responses": {
+          "204": {
+            "description": "No Content"
+          }
+        }
+      }
+    },
+    "/api/MachineParentCategories": {
+      "get": {
+        "tags": ["MachineParentCategories"],
+        "parameters": [
+          {
+            "name": "X-Correlation-ID",
+            "in": "header",
+            "description": "Unique identifier associated with the request",
+            "schema": {
+              "type": "string",
+              "format": "uuid"
+            }
+          }
+        ],
         "responses": {
           "200": {
             "description": "OK",
@@ -1266,14 +1288,6 @@
               "type": "string"
             }
           },
-          {
-            "name": "locale",
-            "in": "query",
-            "schema": {
-              "type": "string",
-              "default": "is"
-            }
-          },
           {
             "name": "X-Correlation-ID",
             "in": "header",
@@ -1419,28 +1433,6 @@
         }
       }
     },
-    "/api/Openapi": {
-      "get": {
-        "tags": ["Openapi"],
-        "summary": "Returns the openapi document as a json file",
-        "parameters": [
-          {
-            "name": "X-Correlation-ID",
-            "in": "header",
-            "description": "Unique identifier associated with the request",
-            "schema": {
-              "type": "string",
-              "format": "uuid"
-            }
-          }
-        ],
-        "responses": {
-          "200": {
-            "description": "OK"
-          }
-        }
-      }
-    },
     "/api/TechnicalInfo/Inputs": {
       "get": {
         "tags": ["TechnicalInfo"],
@@ -2157,12 +2149,10 @@
       },
       "MachineRegistrationCreateDto": {
         "required": [
-          "containerNumber",
           "countryOfProduction",
           "importer",
           "isCECertified",
           "isPreRegistered",
-          "locationOfMachine",
           "model",
           "parentCategory",
           "serialNumber",
@@ -2194,12 +2184,12 @@
             "type": "string"
           },
           "containerNumber": {
-            "minLength": 1,
-            "type": "string"
+            "type": "string",
+            "nullable": true
           },
           "locationOfMachine": {
-            "minLength": 1,
-            "type": "string"
+            "type": "string",
+            "nullable": true
           },
           "serialNumber": {
             "minLength": 1,
@@ -2594,6 +2584,10 @@
           "name": {
             "type": "string",
             "nullable": true
+          },
+          "nameEn": {
+            "type": "string",
+            "nullable": true
           }
         },
         "additionalProperties": false
diff --git a/libs/clients/work-machines/src/lib/workMachines.service.ts b/libs/clients/work-machines/src/lib/workMachines.service.ts
index 4c6cee1f4f50..ba1a730d4b75 100644
--- a/libs/clients/work-machines/src/lib/workMachines.service.ts
+++ b/libs/clients/work-machines/src/lib/workMachines.service.ts
@@ -2,6 +2,7 @@ import { Auth, AuthMiddleware, User } from '@island.is/auth-nest-tools'
 import { Injectable } from '@nestjs/common'
 import {
   ApiMachineModelsGetRequest,
+  ApiMachineOwnerChangeOwnerchangeIdDeleteRequest,
   ApiMachineParentCategoriesTypeModelGetRequest,
   ApiMachineRequestInspectionPostRequest,
   ApiMachineStatusChangePostRequest,
@@ -247,6 +248,15 @@ export class WorkMachinesClientService {
     )
   }
 
+  async deleteOwnerChange(
+    auth: Auth,
+    deleteChange: ApiMachineOwnerChangeOwnerchangeIdDeleteRequest,
+  ) {
+    await this.machineOwnerChangeApiWithAuth(
+      auth,
+    ).apiMachineOwnerChangeOwnerchangeIdDelete(deleteChange)
+  }
+
   async changeMachineSupervisor(
     auth: Auth,
     supervisorChange: SupervisorChange,