Common questions relating to New Street Mortgages transfer of equity

• I jointly own a property in Dunnington , with a New Street Mortgages mortgage with my ex husband. Him and his new partner are going to acquire my share. We had consent from New Street Mortgages to remove my name with hers. The transfer of equity needs to be done by a conveyancing solicitor for New Street Mortgages (supposedly). Can we do the Land Registry change?
• Having been 5 years apart I have made the decision to give up my share of the flat to my husband who is re-mortgaging with New Street Mortgages. Can a transfer of equity be completed in less than one month?
• Can I transfer the equity held in my property with my New Street Mortgages mortgage?
• Am I best advised stop my mortgage payments with New Street Mortgages as soon as a date for my remortgage and transfer of equity has been set?
• I am transferring my equity in apartment in Hendon to my co-owners husband, they are reapplying to New Street Mortgages. We are in heated discussion as to who should pay the charges for the transfer of equity. Is this usually split or is one party obliged to cover the charges for?
• My mortgage broker has suggested using their conveyancer for the Transfer of Equity plus remortgage with New Street Mortgages - Is it not simpler easier to just instruct them?
• As things stand I have a joint New Street Mortgages mortgage with my cousin and am investigating the option of him assuming responsibility for the outstanding mortgage and extracting myself from it, so as to enable me to buy somewhere with my fiance. The remaining mortgage is in the region 250k, and the property value is about 600k. Is this a transfer of equity? Is land tax payable?

Sample of questions in a lawyer form concerning a New Street Mortgages Transfer of Equity

Caveats to be read in supplemental the above New Street 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 Street Mortgages conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such terms are not adhered to 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 as a result of 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 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 market value of the property at the conclusion of the transfer of equity transaction.

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 conveyancing solicitor 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 does not constitute 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.