Coutts & Co transfer of equity example support desk enquires

• My decree absolute has gone through as is the consent order. Now I have to address the transfer of equity on title deeds and the Coutts & Co mortgage. I have contacted Coutts & Co for the transfer of equity forms. What do I do now?
• At what point do I cover the costs of the Stamp Duty Land Tax payable for the transfer of equity in my property in my sole name which is taking place simultaneously with a switching mortgage with Coutts & Co?
• My former husband are planning to get a conveyancer in place for a remortgage with Coutts & Co. Transfer of Equity conveyancing is also requiredI have used the different comparison based websites and the results are from all over UK. How necessary is it to have a lawyer local to us?
• I currently have a joint Coutts & Co mortgage with my brother and am investigating the feasibility of him assuming responsibility for the whole mortgage and extracting myself from it, to enable me to buy a property with my fiance. The outstanding mortgage is in the region 250k, and the property value is about 450k. Is this a transfer of equity? Is land tax due?
• I already have a mortgage with Coutts & Co and am retaining my current mortgaging but wish to have have the equity transferred to my sole name so my former partner won't be on it any longer. How long does the whole transfer of equity process take?
• Will I incur any charges for a Transfer of Equity where the existing mortgage is with Coutts & Co?
• Coutts & Co have today agreed I can take over the home loan on my home. I previously applied for a transfer of equity but is this a transfer of ownership of the house on top?

Information that may be required from your conveyancing solicitor may ask in relation to your Coutts & Co Transfer of Equity

Important warnings to consider in supporting the above Coutts & Co transfer of equity Advice :

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 have a license to do so from the freeholder. If such conditions are not strictly observed 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 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 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 market value of the property at the conclusion of the transfer of equity transaction.

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.

Content 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.