Common questions relating to Coutts & Co transfer of equity
- Online research suggests that solicitors are more expensive than conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor if I am transferring equity and at the same time switching mortgage with Coutts & Co
- I am transferring my equity in house in Warwick to my co-owners husband, they are sticking with Coutts & Co being the the existing mortgage company. We are in heated discussion as to who should pay the fees for the transfer of equity. Is this usually split or is one party obliged to cover the charges for?
- How much the typical conveyancing charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Coutts & Co - and have been quoted Three Hundred pounds plus VAT by Coutts & Co's approved lawyer, Have I been over quoted?
- Will I incur any fees for a Transfer of Equity where the existing mortgage is with Coutts & Co?
- As things stand I have a joint Coutts & Co mortgage with my step-brother and am looking into the option of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to buy somewhere with my partner. The outstanding mortgage is approx 250k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty payable?
- My mum died early last year leaving a mortgage-free semi to me and my brother in equal shared. He has always lived in the premises, there was a clause in her will saying the premisescould not be sold for three years following her death so he could reside there for a specified time frame. He now says he would like to remain in the house 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 conventional way to buy my share?
- I own a flat in Sedgefield
, with a Coutts & Co loan with my ex partner. Him and his new partner are going to acquire my share. We had consent from Coutts & Co to replace my name with hers. The transfer of equity has to be done by a lawyer for Coutts & Co (supposedly). Can we deal with the Land Registry change?
Information that may be required from your conveyancer is likely to ask regarding your Coutts & Co Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Has consent been obtained from Coutts & Co to the proposed transfer of equity?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Would you like us to draft you Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
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 provide a copy of your National Insurance Number?
Caveats to be read in further to the above Coutts & Co transfer of equity Questions and Answers :
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 have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not complied with you may be in breach of your covenants under 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 conveyancing solicitor 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 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 conveyancer 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 lawyer 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 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.
