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New Life Mortgages transfer of equity example support desk enquires

  • How do I go about adding or removing names (transfer of equity) to or from my New Life Mortgages mortgage account?
  • I already have a mortgage with New Life Mortgages and am maintaining my current mortgaging but applying to have have the equity transferred to my sole name so my former partner will come off the deeds. How long do New Life Mortgages take to deal with the application?
  • My divorce is through as is the consent order. Now I must sort out the transfer of equity for the property and the New Life Mortgages mortgage. I have asked New Life Mortgages for the transfer of equity application. What are my next steps?
  • My partner and myself have 50:50 shares in a buy to let. I am a top rate tax payer. Ideally I would like to do a transfer of equity into her name with a view to mitigate tax on rental income. If New Life Mortgages are content with this the legal fees are inexpensive. What are the implications when we dispose of the property? Would my GGT relief be lost.
  • Have recently split up with my partner of 18 years. I'm now living with my mum and dad and she wants to remain in the apartment and buy me out. What percentage do I get. Is it 50% of the equity after discharging the mortgage with New Life Mortgages? I assume proper valuations are required but I really need to be sure that I'm getting I am not being taken advantage of
  • What if my application doesn't meet New Life Mortgages lending criteria for a transfer of equity?
  • I am trying to find a lawyer to handle my transfer of equity. New Life Mortgages have been approached for a refinancing. I thought of asking my financial adviser. I understand he will likely receive a referral fee for recommending someone, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Any flaws you see in this way of thinking?

Examples of questions in a lawyer form relating to New Life Mortgages Transfer of Equity

Who will be responsible for the costs of the Transfer of Equity?

If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Please give the details of anyone to be added to the title deeds?

Please provide the details of anyone to be extracted from the property title?

Please provide the name(s) and addresse(s) of those who jointly own the premises with you?

Please provide a copy of your National Insurance Number?

Caveats to be read in supplemental the above New Life Mortgages transfer of equity Info :

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 properties

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 restrictions 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 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 conveyancer 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 valuation 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 lawyer 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 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 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.


Frequently asked questions relating to New Life Mortgages transfer of equity