Sample questions relating to Adam & Company International transfer of equity
- Last year bought a house without my fiance’s name on the deeds. My conveyancing solicitor advised it is because she is not in the loan offer with Adam & Company International. I'm wondering is there any way that I can add her name on the title?
- I currently have a joint Adam & Company International mortgage with my cousin and am investigating the possibility of him assuming responsibility for the outstanding mortgage and extracting myself from it, to enable me to buy a place with my fiance. The outstanding mortgage is about 250k, and the property value is about 450k. Is this a transfer of equity? Is stamp duty involved?
- My fiance and myself jointly own a BTL. I am a top rate tax payer. Ideally I wish to complete a transfer of equity to her sole name in order mitigate tax on rental income. Assuming Adam & Company International are fine with this the legal fees are not high. What are the implications when we sell? As I would no longer be on the title documents am I giving up my CGT relief.
- Me and a friend got a joint mortgage with Adam & Company International on a property about a year ago. I am now thinking of buying a apartment by myself and my friend would like to buy me out. Assuming we can agree an amount what are the next steps? Is there likely to be any problem with Adam & Company International with him being responsible for the total mortgage as opposed to only half of it?
- I am disposing of my share of a flat in Hendon to the other co-owners fiance, they are reapplying to Adam & Company International. We are haggling as to who must cover the legal bill for the transfer of equity. Should this be shared or is one party obliged to cover the legal bill?
- I am in the process of refinancing my flat in Littleborough
does my lawyer have to be on the Adam & Company International Solicitor panel. The conveyancing also involves a transfer of equity.
- How much the typical solicitors charges are for a transfer of equity? I'm in the process of remortgaging - new loan with Adam & Company International - and have been quoted £350 plus VAT by Adam & Company International's approved conveyancing solicitor, Have I been over quoted?
Sample of questions in a conveyancing solicitor form concerning a Adam & Company International Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Is there to be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
General Advice to read in in addition to the above Adam & Company International 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 Adam & Company International conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
Indemnity Insurance
If the transfer of equity is made as a result of an Order of the Court, then Insolvency Indemnity Insurance is not required. In other cases, 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 Adam & Company International 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 Adam & Company International 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 varies based on the market value of the property at finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Adam & Company International your property may be repossessed.
Preparing the Transfer of Equity with a Adam & Company International 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 Adam & Company International 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.
Information provided 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.
