Frequently asked questions relating to Adam & Company International transfer of equity
- Have recently split up with my ex of 18 years. I'm now living with my parents again and she wants to remain in the flat and pay me off. What percentage do I get. Is it half of the equity after redeeming the Adam & Company International home loan? I assume proper valuations are required but I really need ensure that I'm getting what I am entitled to
- I already have a home loan with Adam & Company International and am maintaining my existing mortgaging but wish to have it in my name alone so my former husband will no longer be on the deeds. How long can it take for the application to be processed?
- I jointly own a house in Sedgefield
, with a Adam & Company International loan with my ex partner. Him and his new partner are going to buy me out. We had approval from Adam & Company International to remove my name with hers. The transfer of equity has to be done by a conveyancer for Adam & Company International (supposedly). Can we do the Land Registry change?
- What if my application doesn't meet Adam & Company International lending criteria for a transfer of equity?
- I am in the process of removing a name from a joint mortgage and the Adam & Company International require me to use a lawyer to carry out the paperwork. Can you recommend a reasonably priced Crabtree
lawyer to deal with the transfer of equity? They need to be on the Adam & Company International conveyancing panel.
- How and when do I incur the Stamp Duty Land Tax due for the transfer of equity in my property in my name alone which is happening simultaneously with a refinancing via Adam & Company International?
- My mum passed away last January leaving a loan-free property to me and my brother 50:50. Having continues to reside at the house, there was a clause in her will saying the propertycould not be sold for 2 years after her death so he could reside there for a specified time frame. He now says he would like to remain in the premises beyond the specified period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the usual way to buy my half from me?
Examples of questions in a lawyer form relating to Adam & Company International Transfer of Equity
Would you like us to draft you Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
If you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Is the transfer of equity subject to a court order? If yes please supply a copy
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Have you approached Adam & Company International to seek consent to the Transfer of Equity
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Caveats to be read in in addition to the above Adam & Company International transfer of equity Advice :
Tax and Legal
There are numerous potential 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 premises
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
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 conveyancing solicitor 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 is dependent on the market value of the property at the time of completion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Adam & Company International.
Preparing the Transfer of Equity with a Adam & Company International 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 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.