Frequently asked questions relating to Adam & Company transfer of equity

• Me and my former fiance and I are are looking to find an affordable conveyancing solicitor to assist in a transfer of equity and remortgage with Adam & Company. I am aware of the possibility of getting ripped off and there's lots of conveyancing practices who do transfer of equity conveyancing out there...who's the best?
• My Adam & Company home loan is in joint names with ex, he is agreeable to be removed and let me have the property. Adam & Company have consented to the transfer of equity to my individual name. Do Adam & Company get in touch with my employer to check my salary?
• How much the typical conveyancing costs are for a transfer of equity? I'm in the process of remortgaging - moving over to Adam & Company - and have been quoted £250 including VAT by Adam & Company's appointed conveyancer, Is this a reasonable price?
• When it comes to transfer of equity conveyancing involving a remortgage with Adam & Company should I be paying VAT 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
• My existing home loan is with Adam & Company. Can I transfer equity to someone under eighteen years old?
• Am I best advised cancel the direct debit for my mortgage with Adam & Company as soon as a date for my remortgage and transfer of equity has been agreed?
• Taking into account that we have been 4 years separated I have made the decision to give up my interest in our flat to my husband who is re-mortgaging with Adam & Company. Could this transfer of equity be completed in less than one month?

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

General Advice to read in supporting 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 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 strictly observed you may be in breach of the lease. This could potentially result in 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 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 varies based on the market value of the property at finalisation of the transfer of equity transaction.

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 conveyancing solicitor 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.