Recently asked questions relating to New Street Mortgages transfer of equity
- As things stand I have a joint New Street Mortgages mortgage with my cousin and am investigating the possibility of him taking on the whole mortgage and subtracting myself from it, to enable me to purchase a place with my fiance. The outstanding mortgage is about 250k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty due?
- I am planning on removing a name from a joint mortgage and the New Street Mortgages require me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Romsey
lawyer to deal with the transfer of equity? They need to be on the New Street Mortgages conveyancing panel.
- I am transferring my share of a apartment in Warwick to the other co-owners husband, they are reapplying to New Street Mortgages. We are haggling as to who should cover the charges for the transfer of equity. Should this be split or is one party obliged to cover the legal bill?
- My New Street Mortgages home loan is in joint names with ex, he is agreeable to be removed and let me have the property. New Street Mortgages will permit the transfer of equity to me solely. Do New Street Mortgages contact my company to confirm my salary?
- Will I have to pay any charges for a Transfer of Equity where the current mortgage is with New Street Mortgages?
- When it comes to transfer of equity conveyancing involving refinance with New Street Mortgages should I be invoiced value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- My decree absolute is through as is the consent order. Now I must deal with the transfer of equity for the property and the New Street Mortgages mortgage. I have contacted New Street Mortgages for the transfer of equity forms. What are my next steps?
Information that may be required from your conveyancing solicitor could ask about your New Street Mortgages Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?
If 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?
Is it the case that one of the registered proprietors died? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please provide a copy of your National Insurance Number?
Who will be responsible for the costs of the Transfer of Equity?
Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Important warnings to consider in conjunction with 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 titles
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 landlord. If such conditions are not complied with 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 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 lawyer 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 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.