Recently asked questions relating to Britannia transfer of equity
- Will I incur any charges for a Transfer of Equity where the existing mortgage is with Britannia?
- My fiance and myself jointly own a investment property. I am a higher rate tax payer. Ideally I would like to do a transfer of equity to her sole name in order reduce our tax on the letting income. If Britannia are happy with this the legal fees are inexpensive. What are the implications when we dispose of the property? Would my GGT relief be lost.
- My current mortgage is with Britannia. Can I transfer equity to someone under eighteen years old?
- I am in the market for an affordable conveyancing lawyer to help me sell in a transfer of equity and remortgage with Britannia. I I am concerned about by bill escalating out of control but with various conveyancing solicitors who do transfer of equity conveyancing out there...who do I opt for?
- My former wife are planning to get a conveyancer lined up for a remortgage with Britannia. Transfer of Equity conveyancing is also neededI have used the different rating based tools and the results are from all over England and Wales. How necessary is it to have a conveyancing solicitor local to us?
- What legal advice do I need when doing a transfer of equity where the home loan is to remain with Britannia?
- My mother passed away seven months ago leaving a unencumbered house to me and my half brother 50:50. He has always lived in the house, there was a clause in her will specifying that the propertycould not be sold for 2 years after her passing so he could continue to live there for a while. He now wants to remain in the property beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the usual way to purchase my share?
Sample of questions in a lawyer questionnaire relating to Britannia Transfer of Equity
Has consent been obtained from Britannia to the proposed transfer of equity?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
If you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
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 a copy of your National Insurance Number?
Please clarify if you are providing any payment for the Transfer of Equity and to whom and specify any such sums?
Information to consider in conjunction with 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 premises
If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such terms are not adhered to you may be in violation of the lease. This could potentially result in 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 lawyer 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 varies based on the valuation of the property at the conclusion 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 conveyancing solicitor 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 does not constitute 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.