Recently asked questions relating to New Life Mortgages transfer of equity
- I am trying to find a conveyancer to undertake my transfer of equity. New Life Mortgages have been approached for a remortgage. I thought of asking my mortgage broker. I understand he may receive a kickback for suggesting someone, but also of benefit will be that he knows the conveyancer, has dealt with them before. Any flaws you see in this way of thinking?
- When it comes to transfer of equity conveyancing involving refinance with New Life Mortgages should I be paying value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
- At what stage do I cover the costs of the Stamp Duty Land Tax payable for the transfer of equity in my home in my name alone which is happening at the same time as a remortgage via New Life Mortgages?
- I am disposing of my equity in apartment in Woodside to my co-owners husband, they are reapplying to New Life Mortgages. We are haggling as to who should pay the charges for the transfer of equity. Is this usually shared or is one party liable for the charges for?
- I am filling out a New Life Mortgages transfer of equity request and have come to the section that asks about defaults etc. I do some debts that I have been clearing over a long period, I understand that they no longer remain my credit records. Do I need to set these out?
- Law month I separated from my wife of twenty years. I'm now back with my parents again and she wishes to stay in the flat and pay me off. What percentage am I entitled to. Is it half of the equity after redeeming the New Life Mortgages home loan? I assume proper valuations are necessary but I would like ensure that I'm getting what I am entitled to
Information that may be required from your conveyancing solicitor may ask about your New Life Mortgages Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?
Where you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please provide the name(s) and addresse(s) of anyone to be extracted from the property title?
Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Has consent been obtained from New Life Mortgages to the proposed transfer of equity?
Can you provide the details of those who jointly own the property with you?
Important warnings to consider in further to the above New Life Mortgages 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 New Life Mortgages 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 terms are not adhered to you may be in breach of your covenants under the lease. This could trigger 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 New Life Mortgages 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 New Life Mortgages 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 conclusion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with New Life Mortgages your property may be repossessed.
Preparing the Transfer of Equity with a New Life Mortgages 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 New Life Mortgages 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.