Questions and answers: Adam & Company International transfer of equity
- I purchased a house with my brother in 2010 Since then, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Adam & Company International mortgage. There is a significant difference between the value the mortgage company say and what the property would sell for currently. Can you offer any advice?
- Can you tell me how to have a person removed from the deeds to a house where the mortgage is with Adam & Company International
- Will I incur any charges for a Transfer of Equity where the existing mortgage is with Adam & Company International?
- Is there such a thing a transfer of equity stamp duty calculator?
- My mother passed away early last year leaving a unencumbered semi to me and my half brother equally. He has always lived in the premises, there was a condition in her will saying the premisescould not be sold for three years after her death so he could reside there for a while. He now wishes to remain in the house beyond the specified period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the conventional way to purchase my equity?
- I currently have a joint Adam & Company International mortgage with my step-brother and am investigating the feasibility of him assuming responsibility for the whole mortgage and removing myself from it, so as to enable me to purchase a place with my fiance. The outstanding mortgage is approx 250k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax payable?
- I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
Sample of questions in a lawyer questionnaire concerning a Adam & Company International Transfer of Equity
Please provide a copy of your National Insurance Number?
Where you 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?
Has consent been obtained from Adam & Company International to the proposed transfer of equity?
Who will be responsible for the costs of the Transfer of Equity?
Is it the case that one of the registered proprietors died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Please provide the details of anyone to be removed from the property title?
General Advice to read in conjunction with the above Adam & Company International transfer of equity Info :
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, provisions in the lease may require that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.
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 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 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 the conclusion 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 lawyer 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.
Information provided 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.