Top seven 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?
• My Keystone Property Finance home loan is in joint names with ex, he has agreed to be removed and let me have the property. Keystone Property Finance have consented to the transfer of equity to me solely. Will Keystone Property Finance get in touch with my company to verify my salary?
• My wife and myself equally own a BTL. I am a top rate tax payer. Ideally I wish to complete a transfer of equity into her name to mitigate tax on the letting income. Assuming Keystone Property Finance are fine with this the legal fees are not high. However what happens when we dispose of the property? Would my GGT relief be lost.
• Our mortgage broker has suggested using their conveyancing solicitor for the Transfer of Equity plus remortgage with Keystone Property Finance - Is it not simpler advisable to just instruct them?
• What is the process for adding or subtracting names (transfer of equity) to or from my Keystone Property Finance mortgage account?
• Is it possible to transfer the equity held in my property with my Keystone Property Finance home loan?
• I am hoping to refinance my maisonette in Winchelsea moving from Leeds Building Society to Keystone Property Finance. The maisonette is currently in joint names but intend for it to be in my name only once I switch. My wife is OK with this and is happy to transfer equity but neither of us want to get a second lawyer involved.

Sample of information requested in a lawyer form concerning a Keystone Property Finance Transfer of Equity

Information to consider in further to the above Keystone Property Finance transfer of equity Questions and Answers :

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, 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 complied with 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 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 is dependent on the market value of the property at the time of completion of the transfer of equity transaction.

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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided on this webpage is for general information and only applies to England and Wales. It should not be regarded as 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.