Examples of recent questions relating to Keystone Property Finance transfer of equity
- After four years separated I have decided to give up my interest in the former home to my husband who is refinancing with Keystone Property Finance. Can a transfer of equity be completed inside 28 days?
- At what point do I cover the costs of stamp duty due for the transfer of equity in my property in my name alone which is taking place simultaneously with a switching mortgage with Keystone Property Finance?
- My Keystone Property Finance mortgage is in joint names with ex, he has agreed to come off the mortgage and put the house in my name alone. Keystone Property Finance will permit the transfer of equity to me solely. Will Keystone Property Finance write my boss to confirm my salary?
- I currently have a joint Keystone Property Finance mortgage with my brother and am looking into the feasibility of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to buy a property with my fiance. The remaining mortgage is in the region 175k, and the property value is about 500k. Is this a transfer of equity? Is stamp duty due?
- I am considering mortgaging my apartment in Winchelsea
does my lawyer have to be on the Keystone Property Finance Conveyancing panel. The conveyancing also involves a transfer of equity.
- I got divorced in 2010. Foolishly I never got around to change the ownership from both our names to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. Keystone Property Finance is content to transfer the property and loan in my name (affordability checks done). Does she need a conveyancer?
- What is the process for having a person removed off the title documents to a house if the mortgage is with Keystone Property Finance
Questions that your conveyancer is likely to ask regarding your Keystone Property Finance Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Please give the name(s) and addresse(s) of anyone to be extracted from the title deeds?
Please provide the details of anyone who jointly owns the premises with you?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Would you like us to draw up a Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
Information to consider in supporting 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, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such terms are not adhered to you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.
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 varies based 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 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 lawyer 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.