Frequently asked questions relating to New Street Mortgages transfer of equity
- My former husband are planning to get a conveyancing solicitor in place for a refinance with New Street Mortgages. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over England and Wales. Is it important to have a conveyancing solicitor local to us?
- I am transferring my share of a apartment in Birmingham to my co-owners fiance, they are reapplying to New Street Mortgages. We are in heated discussion as to who should pay the legal bill for the transfer of equity. Is this usually shared or is one party liable for the legal bill?
- I co-own a flat in Heathfield
, with a New Street Mortgages mortgage with my former husband. Him and his new partner are going to acquire my share. We had approval from New Street Mortgages to replace my name with hers. The transfer of equity needs to be completed by a lawyer for New Street Mortgages (supposedly). Can we do the Land Registry formalities?
- How and when do I incur the Stamp Duty Land Tax chargeable for the transfer of equity in my home in my sole name which is happening simultaneously with a switching mortgage via New Street Mortgages?
- How do I go about adding or removing names (transfer of equity) to or from my New Street Mortgages mortgage account?
- I purchased a flat with my cousin in 2009 Since then, we have both got married. We are now looking to do a transfer of equity so my name is taken off the New Street Mortgages mortgage. There is a 30k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- What can I do where I am not happy with the lawyer who carried out our transfer of equity conveyancing?
Information that may be required from your conveyancing solicitor could ask about your New Street Mortgages Transfer of Equity
Please provide a copy of your National Insurance Number?
Who will be responsible for the costs of the Transfer of Equity?
Please give the details of anyone who jointly owns the property with you?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
If 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.
General Advice to read in conjunction with the above New Street Mortgages 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 New Street Mortgages conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is leasehold, provisions in 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 breach of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 Street 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 Street 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 valuation of the property at the conclusion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with New Street Mortgages.
Preparing the Transfer of Equity with a New Street 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 Street 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.
Content 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.