LenderPanel.com

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

Common questions relating to Britannia transfer of equity

  • Can I transfer the equity held in my property with my Britannia mortgage?
  • My friend and I got a joint mortgage with Britannia on a apartment about a year ago. I am now looking to get a flat on my own and my friend would like to buy me out. Once we have agreed an amount what happens next? Is there likely to be any issue with Britannia with him being responsible for the total mortgage rather than only half of it?
  • My partner and myself jointly own a BTL. I am a top rate tax payer. Ideally I wish to complete a transfer of equity to her sole name to reduce our tax on rental income. Assuming Britannia are content with this the legal fees are not prohibitive. However what happens when we sell? Would my GGT relief be lost.
  • Law week I separated from my ex of twenty years. I'm now back with my parents again and she wishes to remain in the apartment and buy me out. What percentage do I get. Is it half of the equity after discharging the mortgage with Britannia? I assume proper valuations are required but I really need ensure that I'm getting the best deal
  • My Britannia mortgage is in joint names with ex, who is agreeable to be removed and let me have the property. Britannia have consented to the transfer of equity to my individual name. Will Britannia write my boss to verify my salary?
  • After 5 years estranged I have made the decision to transfer my interest in our former home to my husband who is re-mortgaging with Britannia. Can a transfer of equity be completed inside one month?
  • I am selling my share of a house in Hendon to my co-owners fiance, they are reapplying to Britannia. We are in heated discussion as to who should pay the costs of the transfer of equity. Should this be shared or is one of us obliged to cover the charges for?

Examples of information requested in a conveyancer questionnaire relating to Britannia Transfer of Equity

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

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

Have you approached Britannia to seek consent to the Transfer of Equity

Is it the case that one of the registered proprietors died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..

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?

Will there be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same

Information to consider in further to the above Britannia 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 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 have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not complied with you may be in breach of your covenants under 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 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 conveyancer 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 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.

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.


Frequently asked questions relating to Britannia transfer of equity