Common questions relating to Coutts & Co transfer of equity
- My mum passed away seven months ago leaving a unencumbered semi to me and my step brother equally. He has always lived in the premises, there was a provision in the will saying the premisescould not be sold for 24 months after her passing so he could remain there for a prescribed period. He now says he would like to remain in the property beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the usual way to purchase my equity?
- My wife and I equally own a buy to let. I am a top rate tax payer. Preferably I would like to complete a transfer of equity into her name in order mitigate tax on rental income. If Coutts & Co are happy with this the legal fees are inexpensive. However what happens when we dispose of the property? Would my GGT relief be lost.
- After 2 a couple of years separated I have decided to relinquish up my share of our flat to my husband who is refinancing with Coutts & Co. Can a transfer of equity be done in one month?
- I got my Decree Absolute three years ago. For some reason I never got around to transfer ownership from both our names to just in my name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Coutts & Co is happy to transfer the property and loan in my name (financial checks done). Does my ex need any legal representation?
- My divorce has gone through as is the consent order. Now I must sort out the transfer of equity for the property and the Coutts & Co home loan. I have asked Coutts & Co for the transfer of equity forms. What are my next steps?
- What are the average solicitors fees are for a transfer of equity? I'm in the process of remortgaging - new loan with Coutts & Co - and have been quoted £250 plus VAT by Coutts & Co's appointed lawyer, Is this a reasonable price?
- I am am in need of a conveyancer to handle my transfer of equity. Coutts & Co are dealing with the refinancing. I thought of asking my mortgage broker. I understand he may receive a referral fee for recommending someone, but also of benefit will be that he knows the lawyer, has a working relationship with them. Any flaws you see in this way of thinking?
Sample of questions in a lawyer questionnaire relating to Coutts & Co Transfer of Equity
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
If 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 added to the title deeds?
Who will be responsible for the costs of the Transfer of Equity?
Please provide the details of anyone to be removed from the property title?
Important warnings to consider in conjunction with the above Coutts & Co transfer of equity information :
Tax and Legal
There may be various 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 premises
If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with 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 pursuant to 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 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 is dependent on the valuation of the property at the time of completion 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 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.