Common questions relating to Adam & Company transfer of equity

• I am disposing of my equity in property in Hendon to my co-owners fiance, they are reapplying to Adam & Company. We are debating as to who must pay the charges for the transfer of equity. Is this usually shared or is one of us obliged to cover the costs of?
• What are the average solicitors fees are for a transfer of equity? I'm in the process of remortgaging - new loan with Adam & Company - and have been quoted £250 including VAT by Adam & Company's approved lawyer, Have I been over quoted?
• My former wife are looking to get a lawyer in place for a remortgage with Adam & Company. Transfer of Equity conveyancing is also necessaryI have used the different rating based tools and the results are from all over England and Wales. How necessary is it to have a conveyancing solicitor local to us?
• I intend to remortgage my maisonette in Littleborough switching from HSBC to Adam & Company. The apartment is currently in joint names but wish for it to be in my sole name as and when I remortgage. My former partner has agreed to this and is happy to transfer equity but neither of us want to incur lawyer fees.
• I already have a home loan with Adam & Company and am keeping my current mortgaging but seeking to have have the equity transferred to my name only so my ex won't be on it any longer. How long do Adam & Company take to deal with the application?
• How do I go about adding or removing names (transfer of equity) to or from my Adam & Company mortgage account?
• I currently have a joint Adam & Company mortgage with my step-brother and am investigating the option of him taking on the outstanding mortgage and subtracting myself from it, to enable me to purchase a place with my soon-to-be-wife. The remaining mortgage is about 175k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty payable?

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

Information to consider in in addition to the above Adam & Company transfer of equity Advice :

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

If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in breach of 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 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 valuation of the property at finalisation 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 lawyer 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 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.