Top seven questions relating to Investec transfer of equity
- I am hoping to refinance my apartment in Wakefield
switching from Coventry BS to Investec. The flat is currently in joint names but wish for it to be in my name only once I transfer. My wife has verbally consented to this and is willing to transfer equity but neither of us want to incur conveyancing solicitor fees.
- I am planning on removing a name from a joint mortgage and the Investec require me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Blaenavon
lawyer to deal with the transfer of equity? They need to be on the Investec conveyancing panel.
- Will I incur any charges for a Transfer of Equity where the existing mortgage is with Investec?
- My partner and I have equal shares in a buy to let. I am a higher rate tax payer. Preferably I would like to complete a transfer of equity to her sole name in order reduce our tax on rental income. Assuming Investec are content with this the legal fees are not prohibitive. What are the implications when we sell? As I would no longer be on the title documents would I lose my CGT relief.
- I am selling my share of a flat in Hendon to my co-owners fiance, they are sticking with Investec as the the existing lender. We are debating as to who should cover the charges for the transfer of equity. Should this be split or is one party liable for the legal bill?
- As things stand I have a joint Investec mortgage with my step-brother and am investigating 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 soon-to-be-wife. The outstanding mortgage is in the region 175k, and the property value is approx 600k. Is this a transfer of equity? Is land tax payable?
- What if my application doesn't meet Investec lending criteria for a transfer of equity?
Questions that your lawyer is likely to ask in relation to your Investec Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please provide a copy of your National Insurance Number?
Please provide the details of anyone to be removed from the title deeds?
Is it the case that one of the registered owners passed away? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Caveats to be read in in addition to the above Investec transfer of equity information :
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 Investec conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in violation 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 conveyancing solicitor will check with Investec 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 Investec 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.
If you do not keep up the payments on your mortgage with Investec your property may be repossessed.
Preparing the Transfer of Equity with a Investec 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 Investec 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.