LenderPanel.com

Find a Law Firm for your Transfer of Equity approved by
Britannia

Frequently asked questions relating to Britannia transfer of equity

  • My financial adviser has recommended their conveyancing solicitor for the Transfer of Equity plus remortgage with Britannia - won’t it be advisable to just use them?
  • I am in the process of removing a name from a joint mortgage and the Britannia need me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Friern Barnet lawyer to deal with the transfer of equity? They need to be on the Britannia conveyancing panel.
  • My partner and I co-own a flat in Winchelsea . Home loan is with Britannia. I wish to transfer full ownership to him with no passing of money but without using a conveyancer. Do you think this should be easy to so?
  • I got my Decree Absolute in 2010. I simply never dealt with the change the ownership from the current 'joint' status to just in my name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Britannia is willing to transfer the property and loan in my name (affordability checks done). Does she need any legal representation?
  • Do I need legal advice when doing a transfer of equity where the home loan is to remain with Britannia?
  • As things stand I have a joint Britannia mortgage with my brother and am looking into the feasibility of him taking on the outstanding mortgage and extracting myself from it, so as to enable me to buy a property with my partner. The outstanding mortgage is approx 300k, and the property value is approx 450k. Is this a transfer of equity? Is land tax payable?
  • What should I be budgeting for when it comes to what legal fees are for a transfer of equity? I need to transfer equity and refinance - moving over to Britannia - and have been quoted £250 excluding VAT by Britannia's appointed conveyancing solicitor, Have I been over quoted?

Sample of questions in a conveyancer form concerning a Britannia Transfer of Equity

Please clarify if you are providing any payment for the Transfer of Equity and to whom and notify us the amount?

Can you give the details of anyone who jointly owns the premises with you?

Please give the name(s) and addresse(s) of anyone to be added to the title deeds?

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?

Please provide the details of anyone to be removed from the title deeds?

Information to consider in supporting the above Britannia 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 Britannia 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 terms are not adhered to you may be in violation of your covenants under 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 conveyancing solicitor will check with Britannia 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 Britannia 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.
Your property may be repossessed if you do not keep up repayments on your mortgage with Britannia.

Preparing the Transfer of Equity with a Britannia 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 Britannia 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 contained within 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.


Frequently asked questions relating to Britannia transfer of equity