Frequently asked questions relating to Keystone Property Finance transfer of equity

• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Keystone Property Finance?
• My Keystone Property Finance home loan we jointly entered into with ex, he has agreed to be removed and put the house in my name alone. Keystone Property Finance have consented to the transfer of equity to my individual name. Will Keystone Property Finance call my employer to check my salary?
• I am considering remortgaging my apartment in Winchelsea does my lawyer need to be on the Keystone Property Finance Conveyancing panel. The conveyancing also involves a transfer of equity.
• I co-own a house in Littleborough , with a Keystone Property Finance loan with my former husband. Him and his new partner are going to acquire my share. We had approval from Keystone Property Finance to substitute my name with hers. The transfer of equity needs to be done by a for Keystone Property Finance (supposedly). Can we do the Land Registry formalities?
• Me and my partner jointly own a house in Witham . Home loan is with Keystone Property Finance. I wish to transfer full ownership to him with no passing of money but without using a . Is this likely to be easy to so?
• I already have a home loan with Keystone Property Finance and am retaining my current mortgaging but wish to have it in my name alone so my former husband won't be on it any longer. How long can it take for the application to be processed?
• Keystone Property Finance have today agreed I can take over the home loan on my home. I previously applied for a transfer of equity but is this a transfer of ownership at the Land Registry as well?

Examples of questions in a lawyer questionnaire relating to Keystone Property Finance Transfer of Equity

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

Transfer of Equity Conveyancing for Leasehold titles

If your property is 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 restrictions are not strictly observed you may be in breach of your covenants under 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 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 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 finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Keystone Property Finance 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 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 conveyancer 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. Lender Panel.com Ltd will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.