Common questions relating to Adam & Company transfer of equity

• My divorce is through as is the consent order. Now I must deal with the transfer of equity at the HMLR and the Adam & Company home loan. I have asked Adam & Company for the transfer of equity application. What do I do now?
• Given that we have been four years separated I have made the decision to relinquish up my share of the former home to my husband who is re-mortgaging with Adam & Company. Can a transfer of equity be completed inside one month?
• What do I need to do when it comes adding or removing names (transfer of equity) to or from my Adam & Company mortgage account?
• Will I incur any charges for a Transfer of Equity where the current mortgage is with Adam & Company?
• At what point do I cover the costs of the Stamp Duty Land Tax due for the transfer of equity in my property in my name alone which is happening simultaneously with a refinancing via Adam & Company?
• I co-own a flat in Heathfield , with a Adam & Company mortgage with my ex partner. He and his fiance are going to buy me out. We had the go ahead from Adam & Company to substitute my name with hers. The transfer of equity has to be done by a for Adam & Company (apparently). Is it possible for us to do the Land Registry change?
• I am remortgaging my home in Winchelsea does my lawyer have to be on the Adam & Company Conveyancing panel. The conveyancing also involves a transfer of equity.

Information that may be required from your conveyancing solicitor may ask about your Adam & Company Transfer of Equity

Information to consider in further to the above Adam & Company transfer of equity Questions and Answers :

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 premises

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not complied with you may be in violation 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 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 conveyancing solicitor 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.

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 conveyancing solicitor 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 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. Lender Panel.com Ltd will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.