Questions and answers: Adam & Company International transfer of equity
- My fiance and myself jointly own a buy to let. I am a top rate tax payer. Preferably I would like to complete a transfer of equity to her sole name with a view to mitigate tax on rental income. If Adam & Company International are happy with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the deeds would I lose my CGT relief.
- What are my options where I am not happy with the conveyancer who handled our transfer of equity conveyancing?
- Law week I split up with my partner of thirty years. I'm now living with my mum and dad and she wants to stay in the property and pay me off. What portion am I entitled to. Is it half of the equity after paying off the mortgage with Adam & Company International? I assume proper valuations are required but I would like to be sure that I'm getting I am not being taken advantage of
- In 2013 I bought a house without my wife's name on the deeds. My conveyancer said it is due to the fact that she was not in the mortgage with Adam & Company International. Is it possible for me to add her name on the deeds?
- I co-own a property in Wakefield
, with a Adam & Company International mortgage with my former husband. He and his fiance are going to acquire my share. We had consent from Adam & Company International to substitute my name with hers. The transfer of equity has to be completed by a conveyancer for Adam & Company International (supposedly). Can we do the Land Registry change?
- My Adam & Company International home loan is in joint names with ex, who has agreed to come off the deeds and put the house in my name alone. Adam & Company International will permit the transfer of equity to me solely. Do Adam & Company International call my company to confirm my salary?
- My mum died early last year leaving a mortgage-free property to me and my half brother 50:50. Having continues to reside at the property, there was a provision in the will saying the premisescould not be sold for three years following her death so he could reside there for a prescribed period. He now wishes to remain in the house beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the traditional way to buy my equity?
Information that may be required from your lawyer may ask regarding your Adam & Company International Transfer of Equity
Can you give the name(s) and addresse(s) of anyone who jointly owns the property with you?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?
Will there be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Is the transfer of equity subject to a court order? If yes please supply a copy
General Advice to read in conjunction with 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 premises
If your property is leasehold, the lease may require that you obtain the consent of the landlord. If such restrictions are not strictly observed you may be in violation 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 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 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 is dependent on the market value of the property at the conclusion 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 conveyancer 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.