Recently asked questions relating to New Street Mortgages transfer of equity
- Do I need legal advice when doing a transfer of equity where the home loan is to remain with New Street Mortgages?
- I acquired a flat with my cousin in 2009 Since then, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the New Street Mortgages mortgage. There is a 30k difference between the value the New Street Mortgages say and what the property would sell for currently. Can you offer any advice?
- My decree absolute has gone through as is the consent order. Now I need to address the transfer of equity on title deeds and the New Street Mortgages home loan. I have contacted New Street Mortgages for the transfer of equity forms. What happens next?
- New Street Mortgages have today agreed I can take over the home loan on my home. I had applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds as well?
- I am transferring my equity in flat in Birmingham to the other co-owners husband, they are reapplying to New Street Mortgages. We are debating as to who must pay the fees for the transfer of equity. Should this be shared or is one of us liable for the costs of?
- I currently have a joint New Street Mortgages mortgage with my brother and am looking into the possibility of him taking on the whole mortgage and removing myself from it, so as to enable me to purchase a place with my partner. The outstanding mortgage is in the region 300k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty payable?
- In 2012 I bought a apartment without my wife's name on the title documents. My conveyancer advised it is because she was not in the mortgage with New Street Mortgages. Is it possible for me to add her name on the title?
Questions that your lawyer is likely to ask in relation to your New Street Mortgages Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Who will be responsible for the costs 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 someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Has consent been obtained from New Street Mortgages to the proposed transfer of equity?
Caveats to be read in supporting the above New Street 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 Street 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 violation 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 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 conveyancing solicitor 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 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 Street Mortgages your property may be repossessed.
Preparing the Transfer of Equity with a New Street 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 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 conveyancer 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.