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Britannia

Sample questions relating to Britannia transfer of equity

  • I am in the process of removing a name from a joint mortgage and the Britannia require me to use a lawyer to carry out the paperwork. Can you recommend a reasonably priced Crabtree conveyancer to deal with the transfer of equity? They need to be on the Britannia conveyancing panel.
  • I purchased a house with my cousin six years ago Since then, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Britannia mortgage. There is a 40k difference between the value the lender say and what the property would sell for currently. Can you offer any advice?
  • What is the process for adding or subtracting names (transfer of equity) to or from my Britannia mortgage account?
  • Me and my partner jointly own a house in Wakefield . Mortgage is with Britannia. I wish to transfer full ownership to him with no exchange of money but without using a conveyancer. Is this likely to be easy to so?
  • I jointly own a property in Blaenavon , with a Britannia mortgage with my ex husband. Him and his new partner are going to buy me out. We had the go ahead from Britannia to substitute my name with hers. The transfer of equity has to be done by a lawyer for Britannia (apparently). In order to save fees can I deal with the Land Registry formalities?
  • Is stamp duty payable when it comes to an transfer of equity with a mortgage with Britannia?
  • What are my options where I am dissatisfied with the conveyancing solicitor who conducted my transfer of equity transaction?

Questions that your lawyer could ask about your Britannia 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 added to the property title?

Where you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

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?

Can you give the name(s) and addresse(s) of anyone who jointly owns the property with you?

We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)

Caveats to be read in supplemental the above Britannia transfer of equity information :

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

Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach 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 finalisation of the transfer of equity conveyancing.
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 lawyer 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 lawyer 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