Questions and answers: Coutts & Co transfer of equity
- As things stand I have a joint Coutts & Co mortgage with my step-brother and am investigating the option of him taking on the whole mortgage and extracting myself from it, so as to enable me to buy a place with my fiance. The outstanding mortgage is approx 250k, and the property value is about 500k. Is this a transfer of equity? Is stamp duty involved?
- My fiance and I have 50:50 shares in a buy to let. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity to her sole name in order reduce our tax on the letting income. Assuming Coutts & Co are content with this the legal fees are inexpensive. However what happens when we sell? Would my GGT relief be lost.
- Having been 3 years apart I have made the decision to transfer my interest in our property to my husband who is re-mortgaging with Coutts & Co. Can a transfer of equity be completed within four weeks?
- What is the process for adding or removing names (transfer of equity) to or from my Coutts & Co mortgage account?
- My ex-wife and I are are seeking to find an affordable conveyancing solicitor to help me sell in a transfer of equity and refinance with Coutts & Co. I I am concerned about being overcharged but with many conveyancing practices who do transfer of equity conveyancing out there...who do I opt for?
- I intend to remortgage my maisonette in Sedgefield
switching from Leeds Building Society to Coutts & Co. The maisonette is currently in joint names but wish for it to be in my sole name as and when I switch. My former partner is OK with this and is happy to sign a form but neither of us want to get a second lawyer involved.
- The mortgage broker has suggested using their lawyer for my Transfer of Equity plus remortgage with Coutts & Co - won’t it be better to just use them?
Examples of information requested in a conveyancer questionnaire relating to Coutts & Co Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Where you are adding someone 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.
Has consent been obtained from Coutts & Co to the proposed transfer of equity?
Will there be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what amounts
Please provide a copy of your National Insurance Number?
Please list all persons who occupy the property, their respective ages and relationships to you.
Caveats to be read in further to the above Coutts & Co 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 Coutts & Co 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 landlord. If such restrictions are not strictly observed 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 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 Coutts & Co 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 Coutts & Co 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 finalisation of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Coutts & Co.
Preparing the Transfer of Equity with a Coutts & Co 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 Coutts & Co 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 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.