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Common questions relating to Keystone Property Finance transfer of equity

  • I am led to believe we would need at least AP1 and TR1. Is this true?
  • I intend to remortgage my apartment in Miles Platting moving from Barclays to Keystone Property Finance. The home is currently in joint names but intend for it to be in my sole name when I transfer. My wife has verbally consented to this and is willing to sign a form but neither of us want to get a second lawyer involved.
  • In 2012 I purchased a flat without my partner's name on the deeds. My lawyer claimed it is because she is not in the mortgage with Keystone Property Finance. I'm wondering is there any way that I can add her name on the title?
  • My decree absolute has gone through as is the consent order. Now I have to sort out the transfer of equity for the property and the Keystone Property Finance mortgage. I have asked Keystone Property Finance for the transfer of equity forms. What are my next steps?
  • I am transferring my equity in apartment in Woodside to the other co-owners fiance, they are reapplying to Keystone Property Finance. We are haggling as to who should cover the legal bill for the transfer of equity. Is this usually shared or is one party liable for the legal bill?
  • As things stand I have a joint Keystone Property Finance mortgage with my cousin and am investigating the feasibility of him taking on the outstanding 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 300k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty involved?
  • Keystone Property Finance have just agreed I can take over the home loan on my home. I had applied for a transfer of equity but presumably there is a transfer of ownership of the house as well?

Sample of questions in a conveyancer form relating to Keystone Property Finance Transfer of Equity

Can you give the details of those who jointly own the premises with you?

Is there to be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same

Please provide a copy of your National Insurance Number?

Would you like us to draw up a Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?

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

Is the transfer of equity subject to a court order? If yes please supply a copy

Information to consider in conjunction with the above Keystone Property Finance transfer of equity Advice :

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 Keystone Property Finance conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such terms are not adhered to 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 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 conveyancer 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 finalisation of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Keystone Property Finance.

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 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.


Frequently asked questions relating to Keystone Property Finance transfer of equity