Sample questions relating to Adam & Company International transfer of equity
- I currently have a joint Adam & Company International mortgage with my cousin and am looking into the feasibility of him assuming responsibility for the whole mortgage and extracting myself from it, to enable me to purchase a property with my partner. The remaining mortgage is approx 300k, and the property value is about 500k. Is this a transfer of equity? Is land tax payable?
- I acquired a property with a friend six years ago Since then, we have both got married. We are now looking to do a transfer of equity so my name is removed the Adam & Company International mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- My wife and I have 50:50 shares in a investment property. I am a higher rate tax payer. Ideally I would like to do a transfer of equity to her sole name in order mitigate tax on the letting income. If Adam & Company International are content with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the deeds am I giving up my CGT relief.
- Adam & Company International have just agreed I can take over the home loan on the flat. I had applied for a transfer of equity but presumably there is a transfer of ownership of the house in addition?
- The financial adviser has suggested using their conveyancer for the Transfer of Equity plus remortgage with Adam & Company International - Is it not simpler advisable to just instruct them?
- Last year purchased a house without my partner's name on the ownership paperwork. My lawyer said it is due to the fact that she is not in the loan offer with Adam & Company International. Is it possible for me to add her name on the deeds?
- I am in the process of removing a name from a joint mortgage and the Adam & Company International need me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Timperley
conveyancer to deal with the transfer of equity? They need to be on the Adam & Company International conveyancing panel.
Questions that your conveyancer is likely to ask in relation to your Adam & Company International Transfer of Equity
Please let us know of you wish us to prepare Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Please provide a copy of your National Insurance Number?
Please provide the name(s) and addresse(s) of anyone to be extracted from the property title?
If you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
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?
Caveats to be read in supplemental the above Adam & Company International transfer of equity information :
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 titles
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such terms are not adhered to you may be in violation of 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 conveyancer 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 the conclusion of the transfer of equity transaction.
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 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Content on this webpage is for general information and only applies to England and Wales. It should not be regarded as 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.