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Keystone Property Finance

Top seven questions relating to Keystone Property Finance transfer of equity

  • At what point do I pay the Stamp Duty Land Tax payable for the transfer of equity in my home in my name alone which is happening simultaneously with a switching mortgage via Keystone Property Finance?
  • I already have a mortgage with Keystone Property Finance and am retaining my existing mortgaging but seeking to have it in my name only so my former husband won't be on it any longer. How long does the whole transfer of equity process take?
  • My divorce has gone through as is the consent order. Now I have to address the transfer of equity at the land registry and the Keystone Property Finance home loan. I have contacted Keystone Property Finance for the transfer of equity forms. What do I do now?
  • I am am in need of a conveyancing solicitor to deal with my transfer of equity. Keystone Property Finance are dealing with the refinancing. I thought of asking my financial adviser. I understand he may get a kickback for recommending someone, but also of benefit will be that he knows the lawyer, has a working relationship with them. Is my logic flawed?
  • Do I need legal advice when doing a transfer of equity where the home loan is to remain with Keystone Property Finance?
  • I acquired a house with a friend five.seven years ago Since then, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Keystone Property Finance mortgage. There is a 30k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
  • I am led to believe we would need at least AP1 and TR1. Is this true?

Information that may be required from your lawyer is likely to ask regarding your Keystone Property Finance Transfer of Equity

Please inform us if you are providing any payment for the Transfer of Equity and to whom and specify the amount?

Please provide a copy of your National Insurance Number?

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.

Please give the name(s) and addresse(s) of anyone to be extracted from the property title?

Can you provide the name(s) and addresse(s) of anyone who jointly owns the premises with you?

Important warnings to consider in supplemental the above Keystone Property Finance transfer of equity information :

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 Keystone Property Finance 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 restrictions are not strictly observed you may be in breach of your covenants under the lease. This could potentially result in 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 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 Keystone Property Finance 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 Keystone Property Finance 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 conveyancing.
If you do not keep up the payments on your mortgage with Keystone Property Finance your property may be repossessed.

Preparing the Transfer of Equity with a Keystone Property Finance Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Keystone Property Finance 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.

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 Keystone Property Finance transfer of equity