Questions and answers: Britannia transfer of equity
- At what stage do I pay the Stamp Duty Land Tax chargeable for the transfer of equity in my home in my name alone which is taking place at the same time as a switching mortgage with Britannia?
- My fiance and I jointly own a buy to let. I am a higher rate tax payer. Preferably I wish to do a transfer of equity to her sole name with a view to mitigate tax on rental income. Assuming Britannia are fine with this the legal fees are inexpensive. However what happens when we dispose of the property? Would my GGT relief be lost.
- I am answering a Britannia transfer of equity request and have arrived at the part regarding defaults etc. I do some debts that I have been discharging over a long period, I understand that they no longer remain my credit records. Must I reveal these?
- I jointly own a property in Heathfield
, with a Britannia mortgage with my former partner. He and his new partner are going to acquire my share. We had approval from Britannia to replace my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Britannia (apparently). Is it possible for us to do the Land Registry formalities?
- As things stand I have a joint Britannia mortgage with my step-brother and am investigating the feasibility of him assuming responsibility for the whole mortgage and removing myself from it, to enable me to buy a place with my fiance. The remaining mortgage is about 175k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty involved?
- What do I do if I am unhappy with the conveyancer who conducted our transfer of equity conveyancing?
- Is it possible to apply to borrow a further advance from Britannia as part of a Transfer of Equity?
Questions that your conveyancer is likely to ask about your Britannia Transfer of Equity
Please provide a copy of your National Insurance Number?
Is it the case that one of the registered proprietors passed away? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please clarify where you are providing any payment for the Transfer of Equity and to whom and notify us the amount?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Have you approached Britannia to obtain consent to the Transfer of Equity
Please give the name(s) and addresse(s) of anyone who jointly owns the property with you?
General Advice to read in in addition to the above Britannia transfer of equity Info :
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 titles
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of 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.
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 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 time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Britannia your property may be repossessed.
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 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 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.