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Coutts & Co transfer of equity: q and a’s

  • I am refinancing my flat in Wakefield does my lawyer have to be on the Coutts & Co Solicitor panel. The conveyancing also involves a transfer of equity.
  • I jointly own a house in Blaenavon , with a Coutts & Co mortgage with my former husband. He and his new partner are going to buy me out. We had approval from Coutts & Co to replace my name with hers. The transfer of equity needs to be done by a conveyancing solicitor for Coutts & Co (apparently). Can we deal with the Land Registry formalities?
  • As things stand I have a joint Coutts & Co mortgage with my brother and am investigating the possibility of him taking on the whole mortgage and extracting myself from it, to enable me to buy a place with my fiance. The remaining mortgage is in the region 175k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax due?
  • I am transferring my share of a property in Hendon to my co-owners fiance, they are reapplying to Coutts & Co. We are in heated discussion as to who must pay the fees for the transfer of equity. Is this usually shared or is one of us obliged to cover the fees for?
  • My partner and I equally own a buy to let. I am a top rate tax payer. Preferably I wish to complete a transfer of equity into her name to mitigate 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.
  • I am in the market for an affordable conveyancing solicitor to help me sell in a transfer of equity and refinance with Coutts & Co. I I am concerned about by bill escalating out of control but with lots of conveyancing solicitors who do transfer of equity conveyancing out there...who do I opt for?
  • My partner and I jointly own a property in Witham . Mortgage is with Coutts & Co. I wish to transfer full ownership to him with no payment of money but without using a conveyancer. Is this likely to be easy to so?

Sample of questions in a lawyer questionnaire concerning a Coutts & Co Transfer of Equity

Is the transfer of equity subject to a court order? If yes please supply a copy

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Please list all persons who occupy the property, their respective ages and relationships to you.

Can you give the details of those who jointly own the property with you?

Is it the case that one of the registered proprietors died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.

If 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?

Important warnings to consider in conjunction with 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

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in violation of the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to 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 lawyer 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 market value of the property at the conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Coutts & Co your property may be repossessed.

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 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.


Frequently asked questions relating to Coutts & Co transfer of equity