Questions and answers: Coutts & Co transfer of equity
- Am I best advised stop my mortgage payments with Coutts & Co once a date for my remortgage and transfer of equity has been set?
- Do I need legal representation when doing a transfer of equity where the mortgage is to remain with Coutts & Co?
- In 2011 I bought a flat without my partner's name on the title. My conveyancing solicitor advised it is due to the fact that she was not in the mortgage with Coutts & Co. Is it possible for me to put her name on the documents at HMLR?
- My mum died half a year ago leaving a loan-free property to me and my brother equally. He has always lived in the house, there was a condition in her will specifying that the housecould not be sold for 2 years after her death so he could continue to live there for a prescribed period. He now says he would like to remain in the property beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the traditional way to acquire my share?
- After a number of years separated I have made the decision to relinquish up my share of our property to my husband who is re-mortgaging with Coutts & Co. Could this transfer of equity be completed in less than four weeks?
- I am disposing of my share of a house in Warwick to my co-owners fiance, they are sticking with Coutts & Co being the the existing lender. We are debating as to who should pay the charges for the transfer of equity. Is this normally split or is one of us liable for the legal bill?
- When it comes to transfer of equity conveyancing involving refinance with Coutts & Co should I be charged VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
Examples of information requested in a conveyancing solicitor questionnaire concerning a Coutts & Co Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Please provide the details of anyone to be added to the title deeds?
Can you provide the name(s) and addresse(s) of those who jointly own the premises with you?
Is the transfer of equity subject to a court order? If yes please supply a copy
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?
Please provide a copy of your National Insurance Number?
Important warnings to consider in supplemental 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, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach of the lease. This could potentially result in 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 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 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 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 conveyancer 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 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.