Top seven questions relating to Adam & Company transfer of equity
- I am trying to find a conveyancing solicitor to undertake my transfer of equity. Adam & Company are dealing with the refinancing. I considered asking my mortgage broker. I am lead to believe he may receive a referral fee for recommending someone, but also of benefit will be that he knows the lawyer, has a working relationship with them. Is my logic misguided?
- I am completing a Adam & Company transfer of equity form and have arrived at the part that asks about debts etc. I do some debts that I have been paying off over a long period, I understand that they have long since disappeared from my credit rating. Do I need to declare these?
- What are the average conveyancing costs are for a transfer of equity? I need to transfer equity and remortgage - new loan with Adam & Company - and have been quoted £250 plus VAT by Adam & Company's approved lawyer, Have I been over quoted?
- I got my Decree Absolute in 2011. For some reason I never dealt with the change the ownership from both our names to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Adam & Company is willing to transfer the property and loan in my name (financial checks done). Does she need any legal representation?
- What are my options where I am dissatisfied with the lawyer who conducted our transfer of equity transaction?
- My mortgage broker has suggested using their conveyancing solicitor for the Transfer of Equity plus remortgage with Adam & Company - Surely it’s advisable to just use them?
- My decree absolute has gone through as is the consent order. Now I need to sort out the transfer of equity on title deeds and the Adam & Company home loan. I have called Adam & Company for the transfer of equity forms. What are my next steps?
Sample of questions in a lawyer form concerning a Adam & Company Transfer of Equity
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Who will be responsible for the costs of the Transfer of Equity?
Please provide a copy of your National Insurance Number?
Where you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please let us know of you wish us to draft you Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
Please provide the details of anyone to be added to the title deeds?
Important warnings to consider in in addition to the above Adam & Company transfer of equity Info :
Tax and Legal
There are numerous potential 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 properties
If your property is leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation of your covenants under the lease. This could potentially result in 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 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 the conclusion 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 lawyer 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 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.