Adam & Company transfer of equity example support desk enquires

• My partner and myself equally own a investment property. I am a top rate tax payer. Preferably I would like to complete a transfer of equity into her name in order mitigate tax on the letting income. Assuming Adam & Company are happy with this the legal fees are not high. What are the implications when we sell? Would my GGT relief be lost.
• I understand we would need at least AP1 and TR1. Is this true?
• Can I apply to request a further advance from Adam & Company as part of a Transfer of Equity?
• Is there such a thing a transfer of equity stamp duty calculator?
• I am are seeking to find a value for money conveyancing lawyer to assist in a transfer of equity and refinance with Adam & Company. I really don't want to get ripped off and there are various conveyancing solicitors who do transfer of equity conveyancing out there...who's the best?
• What legal advice do I need when doing a transfer of equity where the home loan is to remain with Adam & Company?
• I co-own a house in Witham , with a Adam & Company mortgage with my ex partner. He and his fiance are going to acquire my share. We had approval from Adam & Company to substitute my name with hers. The transfer of equity has to be done by a conveyancer for Adam & Company (supposedly). Is it possible for us to do the Land Registry formalities?

Sample of questions in a conveyancer form concerning a Adam & Company Transfer of Equity

Caveats to be read in further 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 require that you obtain the consent of the landlord. If such restrictions 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 conveyancer 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 transaction.

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 conveyancer 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.