Sample questions relating to Adam & Company transfer of equity
- When it comes to transfer of equity conveyancing involving refinance with Adam & Company should I be paying value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- Am I best advised cancel the direct debit for my mortgage with Adam & Company once a date for my remortgage and transfer of equity has been set?
- I co-own a property in Wakefield
, with a Adam & Company loan with my ex husband. Him and his fiance are going to acquire my share. We had consent from Adam & Company to replace my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Adam & Company (apparently). Is it possible for us to deal with the Land Registry change?
- My mum died seven months ago leaving a mortgage-free bungalow to me and my half brother in equal shared. He has always lived in the premises, there was a condition in the will saying the premisescould not be sold for 2 years after her passing so he could remain there for a prescribed period. He now says he would like to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the usual way to buy my equity?
- I am planning on removing a name from a joint mortgage and the Adam & Company require me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Ampthill lawyer to deal with the transfer of equity? They need to be on the Adam & Company conveyancing panel.
- My existing mortgage is with Adam & Company. Can I transfer equity to someone who is not yet eighteen years old?
- I got divorced four years ago. For some reason I never got around to transfer ownership from the current 'joint' status to my sole name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Adam & Company is willing to transfer the property and loan in my name (affordability checks done). Does she need a conveyancer?
Examples of questions in a conveyancing solicitor questionnaire concerning a Adam & Company Transfer of Equity
Have you approached Adam & Company to seek consent to the Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Would you like us to draft you Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please give the name(s) and addresse(s) of those who jointly own the property with you?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
General Advice to read in supporting the above Adam & Company 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 conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not complied with 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 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 conveyancer will check with Adam & Company 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 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 conveyancing.
If you do not keep up the payments on your mortgage with Adam & Company your property may be repossessed.
Preparing the Transfer of Equity with a Adam & Company 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 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.
Information contained within 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.