Adam & Company transfer of equity example support desk enquires
- My Adam & Company home loan we jointly entered into with ex, he has agreed to be removed and put the house in my name alone. Adam & Company have consented to the transfer of equity to me solely. Will Adam & Company call my employer to verify my salary?
- I am transferring my share of a property in Warwick to my co-owners husband, they are sticking with Adam & Company being the the existing mortgage company. We are in heated discussion as to who should pay the charges for the transfer of equity. Is this normally shared or is one party liable for the costs of?
- When it comes to transfer of equity conveyancing involving a remortgage with Adam & Company should I be paying VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- I own a property in Winchelsea
, with a Adam & Company mortgage with my former partner. He and his new partner are going to acquire my share. We had approval from Adam & Company to replace my name with hers. The transfer of equity needs to be completed by a conveyancer for Adam & Company (supposedly). Can we deal with the Land Registry formalities?
- My decree absolute has gone through as is the consent order. Now I need to sort out the transfer of equity for the property and the Adam & Company home loan. I have called Adam & Company for the transfer of equity forms. What do I do now?
- Law month I split up with my partner of 18 years. I'm now living with my mum and dad and she wants to stay in the property and pay me off. What portion do I get. Is it half of the equity after discharging the Adam & Company home loan? I assume proper valuations are necessary but I really need ensure that I'm getting what I am entitled to
- My dad passed away seven months ago leaving a unencumbered semi to me and my brother 50:50. He has always lived in the house, there was a provision in her will saying the premisescould not be sold for three years following her passing so he could continue to live there for a specified time frame. He now says he would like to remain in the house 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 home loan in the conventional way to purchase my share?
Sample of questions in a lawyer questionnaire concerning a Adam & Company Transfer of Equity
Please give the name(s) and addresse(s) of anyone who jointly owns the property with you?
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Have you approached Adam & Company to seek consent to the Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Please list all persons who occupy the property, their respective ages and relationships to you.
Important warnings to consider in conjunction with 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
Should the tenure of your property be leasehold, 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 breach of the lease. This could potentially result in 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 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 lawyer 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 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.
Preparing the Transfer of Equity with a Adam & Company 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 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 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.