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New Life Mortgages

New Life Mortgages transfer of equity example support desk enquires

  • I am transferring my share of a flat in Woodside to my co-owners husband, they are reapplying to New Life Mortgages. We are haggling as to who must cover the legal bill for the transfer of equity. Should this be split or is one party obliged to cover the charges for?
  • How and when do I pay the Stamp Duty Land Tax due for the transfer of equity in my home in my sole name which is happening at the same time as a remortgage via New Life Mortgages?
  • I currently have a joint New Life Mortgages mortgage with my step-brother and am looking into the feasibility of him taking on the outstanding mortgage and removing myself from it, so as to enable me to purchase a property with my partner. The remaining mortgage is about 300k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty due?
  • My current mortgage is with New Life Mortgages. Can I transfer equity to someone less than eighteen years old?
  • I intend to remortgage my flat in Littleborough changing from Lloyds TSB to New Life Mortgages. The maisonette is currently in joint names but propose for it to be in my name only when I transfer. My wife has agreed to this and is willing to sign a form but neither of us want to incur conveyancer charges.
  • Our financial adviser has recommended their lawyer for our Transfer of Equity plus remortgage with New Life Mortgages - won’t it be advisable to just instruct them?
  • I am under the impression we would need at least AP1 and Transfer Deed. Is this true?

Questions that your lawyer is likely to ask regarding your New Life Mortgages Transfer of Equity

Is it the case that one of the registered proprietors died? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

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

Please provide the details of anyone who jointly owns the property with you?

Please let us know of you wish us to draft you Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?

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

Caveats to be read 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 premises

If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in violation 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 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 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 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 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 conveyancing solicitor 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