Top seven questions relating to Adam & Company International transfer of equity

• How and when do I pay the Stamp Duty Land Tax due for the transfer of equity in my home in my name alone which is taking place simultaneously with a switching mortgage via Adam & Company International?
• What legal advice do I need when doing a transfer of equity where the home loan is to remain with Adam & Company International?
• Can I transfer the equity held in my property with my Adam & Company International home loan?
• I currently have a joint Adam & Company International mortgage with my brother and am looking into the feasibility of him assuming responsibility for the outstanding mortgage and extracting myself from it, so as to enable me to buy a property with my soon-to-be-wife. The outstanding mortgage is about 250k, and the property value is approx 450k. Is this a transfer of equity? Is land tax involved?
• I am looking for a lawyer to deal with my transfer of equity. Adam & Company International have been approached for a remortgage. I thought of asking my mortgage broker. I understand he may get a referral fee for recommending someone, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Is my logic flawed?
• My friend and I got a joint mortgage with Adam & Company International on a house about a year ago. I am now thinking of buying a flat by myself and my friend would like to buy me out. Once we have agreed a figure where do we go? Is there likely to be any issue with Adam & Company International with him being responsible for the total mortgage rather than only part of it?
• What are my options where I am dissatisfied with the conveyancing solicitor who carried out our transfer of equity conveyancing?

Sample of questions in a lawyer form concerning a Adam & Company International Transfer of Equity

Information to consider 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 properties

Should the tenure of your property be leasehold, provisions in 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.

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 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 valuation of the property at finalisation of the transfer of equity transaction.

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 contained within 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.