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Keystone Property Finance

Frequently asked questions relating to Keystone Property Finance transfer of equity

  • I jointly own a house in Timperley , with a Keystone Property Finance mortgage with my ex husband. He and his fiance are going to buy me out. We had approval from Keystone Property Finance to remove my name with hers. The transfer of equity has to be done by a lawyer for Keystone Property Finance (apparently). Can we do the Land Registry change?
  • How and when do I incur stamp duty chargeable for the transfer of equity in my home in my sole name which is taking place at the same time as a switching mortgage via Keystone Property Finance?
  • How do I go about adding or subtracting names (transfer of equity) to or from my Keystone Property Finance mortgage account?
  • Will I incur any fees for a Transfer of Equity where the current mortgage is with Keystone Property Finance?
  • My financial adviser has suggested using their lawyer for our Transfer of Equity plus remortgage with Keystone Property Finance - Is it not simpler advisable to just instruct them?
  • I currently have a joint Keystone Property Finance mortgage with my brother and am investigating the possibility of him taking on the whole mortgage and extracting myself from it, to enable me to buy somewhere with my soon-to-be-wife. The remaining mortgage is in the region 250k, and the property value is approx 600k. Is this a transfer of equity? Is stamp duty due?
  • What are my options where I am unhappy with the conveyancer who undertook our transfer of equity transaction?

Sample of information requested in a conveyancer questionnaire relating to Keystone Property Finance Transfer of Equity

Where you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Who will be responsible for the costs of the Transfer of Equity?

Please give the details of anyone to be extracted from the property title?

Would you like us to draft you Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?

Please list all persons who occupy the property, their respective ages and relationships to you.

Can you give the name(s) and addresse(s) of those who jointly own the property with you?

General Advice to read in supplemental the above Keystone Property Finance 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 Keystone Property Finance conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such restrictions are not strictly observed you may be in breach of 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 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 varies based on the valuation of the property at the time of completion 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 conveyancer 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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information contained within 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