LenderPanel.com

Find a Law Firm approved by
New Life Mortgages

Are you in need of a Transfer of Equity with a New Life Mortgages Ltd mortgage? Failing to check that a lawyer is on the New Life Mortgages Ltd list of approved solicitors can put your transfer at risk of delay or failure. Only LenderPanel.com provides a subset of authorised conveyancers for over 130 lenders.

Questions and answers: New Life Mortgages transfer of equity

  • What if my application doesn't meet New Life Mortgages lending criteria for a transfer of equity?
  • At what point do I pay stamp duty due for the transfer of equity in my home in my name alone which is taking place at the same time as a remortgage via New Life Mortgages?
  • My divorce is through as is the consent order. Now I need to address the transfer of equity for the property and the New Life Mortgages home loan. I have asked New Life Mortgages for the transfer of equity forms. What do I do now?
  • I am trying to find a conveyancing solicitor to handle my transfer of equity. New Life Mortgages have been approached for a remortgage. I considered asking my mortgage broker. I understand he may receive a kickback for suggesting someone, but also of benefit will be that he knows the lawyer, has a working relationship with them. Is my logic misguided?
  • I am completing a New Life Mortgages transfer of equity application and have come to the part regarding defaults etc. I do some debts that I have been reducing since 2007, I understand that they no longer remain my credit rating. Do I need to reveal these?
  • What are the average solicitors fees are for a transfer of equity? I'm in the process of remortgaging - new loan with New Life Mortgages - and have been quoted £350 including VAT by New Life Mortgages's approved conveyancing solicitor, Have I been over quoted?
  • I intend to remortgage my flat in Wakefield switching from Santander to New Life Mortgages. The home is currently in joint names but I would like it to be in my sole name as and when I switch. My former partner is OK with this and is willing to transfer equity but neither of us want to incur lawyer charges.

Information that may be required from your conveyancing solicitor is likely to ask about your New Life Mortgages Transfer of Equity

Have you approached New Life Mortgages to obtain consent to the Transfer of Equity

Please provide a copy of your National Insurance Number?

Where you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Would you like us to draft you Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Where you 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?

Information to consider in supporting the above New Life Mortgages transfer of equity Questions and Answers :

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 have a license to do so from the freeholder. If such conditions are not strictly observed you may be in violation 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 pursuant to an Order of the Court, then Insolvency Indemnity Insurance is not required. In other cases, 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 varies based on the market value of the property at finalisation of the transfer of equity transaction.
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 lawyer 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.


Frequently asked questions relating to New Life Mortgages transfer of equity