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Recently asked questions relating to Keystone Property Finance transfer of equity

  • What if my application doesn't meet Keystone Property Finance lending criteria for a transfer of equity?
  • I jointly own a flat in Friern Barnet , with a Keystone Property Finance loan with my former husband. Him and his fiance are going to acquire my share. We had approval from Keystone Property Finance to replace my name with hers. The transfer of equity has to be done by a conveyancer for Keystone Property Finance (supposedly). In order to save fees can I do the Land Registry change?
  • I purchased a flat with my brother in 2008 Since then, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the Keystone Property Finance mortgage. There is a significant difference between the value the Keystone Property Finance say and what the property would sell for currently. Can you offer any advice?
  • I currently have a joint Keystone Property Finance mortgage with my cousin and am looking into the option of him taking on the outstanding mortgage and subtracting myself from it, so as to enable me to purchase somewhere with my fiance. The outstanding mortgage is approx 175k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty involved?
  • I got my Decree Absolute four years ago. Foolishly I never got around to transfer ownership from both our names to just in my name. I am ready to do that and so is she. Transfer-of-equity is needed. Keystone Property Finance is happy to transfer the property and loan in my name (financial checks done). Does my ex need any legal representation?
  • 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 is this a transfer of ownership of the house as well?
  • I am disposing of my share of a house in Warwick to my co-owners husband, they are reapplying to Keystone Property Finance. We are haggling as to who should cover the legal bill for the transfer of equity. Should this be shared or is one party liable for the charges for?

Questions that your conveyancing solicitor may ask regarding your Keystone Property Finance Transfer of Equity

Has one of the registered owners passed away? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.

Will there 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 what amounts

Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?

Please provide a copy of your National Insurance Number?

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

Please let us know of you wish us to draw up a Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?

General Advice to read in supplemental 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 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 landlord. If such conditions are not strictly observed you may be in breach of the lease. This could potentially result in 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 is dependent on the market value of the property at the time of completion of the transfer of equity conveyancing.
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 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