Recently asked questions relating to Adam & Company transfer of equity
- What do I do if I am not happy with the conveyancer who did my transfer of equity conveyancing?
- I am answering a Adam & Company transfer of equity form and have arrived at the section that asks about defaults etc. There are some debts that I have been paying off for a number of years, I understand that they no longer remain my credit rating. Must I set these out?
- Will I incur any charges for a Transfer of Equity where the current mortgage is with Adam & Company?
- My financial adviser has recommended their conveyancer for our Transfer of Equity plus remortgage with Adam & Company - Is it not simpler better to just use them?
- My former husband 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 services and the results are from all over the country. Is it important to instruct a conveyancer local to us?
- My ex-wife and I are are seeking to find an affordable conveyancing solicitor to assist in a transfer of equity and remortgage with Adam & Company. I want to avoid being ripped off but with various conveyancing solicitors who do transfer of equity conveyancing to choose from...who do I opt for?
- My dad died early last year leaving a unencumbered semi to me and my half brother 50:50. Having continues to reside at the premises, there was a clause in her will saying the housecould not be sold for 24 months after her death so he could continue to live there for a while. He now wishes to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the usual way to buy my equity?
Examples of information requested in a conveyancer questionnaire concerning a Adam & Company Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
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?
Has consent been obtained from Adam & Company to the proposed transfer of equity?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please provide the name(s) and addresse(s) of anyone to be extracted from the property title?
Information to consider in supplemental 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
If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such terms are not adhered to 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 the time of completion 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 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 contained within 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.
