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New Street Mortgages transfer of equity example support desk enquires

  • Me and a friend got a joint mortgage with New Street Mortgages on a flat a couple of years ago. I am now looking to get a property on my own and my friend would like to buy me out. On the basis that we can settle on a price what are the next steps? Is there likely to be any problem with New Street Mortgages with him being responsible for the total mortgage as opposed to only part of it?
  • My former wife are seeking to get a conveyancing solicitor lined up for a refinance with New Street Mortgages. Transfer of Equity conveyancing is also necessaryI have used the different rating based tools and the results are from all over England and Wales. Is it important to appoint a lawyer local to us?
  • Have recently separated from my wife of twenty years. I'm now living with my parents again and she wants to stay in the property and buy me out. What percentage do I get. Is it half of the equity after paying off the New Street Mortgages home loan? I assume proper valuations are necessary but I would like ensure that I'm getting the best deal
  • As things stand I have a joint New Street Mortgages mortgage with my step-brother and am looking into the option of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to purchase a property with my fiance. The outstanding mortgage is about 200k, and the property value is approx 500k. Is this a transfer of equity? Is land tax payable?
  • I am under the impression we would need at least AP1 and TR1. Is this true?
  • I already have a home loan with New Street Mortgages and am keeping my current mortgaging but seeking to have it in my sole name so my former husband won't be on it any longer. How long does the whole transfer of equity process take?
  • My partner and myself have equal shares in a buy to let. I am a top rate tax payer. Preferably I would like to do a transfer of equity to her sole name in order mitigate tax on the letting income. If New Street Mortgages are fine with this the legal fees are not prohibitive. However what happens when we sell? Would my GGT relief be lost.

Sample of information requested in a conveyancing solicitor form concerning a New Street Mortgages Transfer of Equity

Please give the details of anyone to be extracted from the title deeds?

Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Can you provide the name(s) and addresse(s) of anyone who jointly owns the property with you?

Please confirm where you are providing any payment for the Transfer of Equity and to whom and disclose any such sums?

Has consent been obtained from New Street Mortgages to the proposed transfer of equity?

Information to consider in supporting the above New Street Mortgages transfer of equity information :

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, the lease may require that you have a license to do so from the landlord. If such restrictions are not strictly observed you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 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 varies based on the valuation of the property at the conclusion of the transfer of equity transaction.
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 conveyancing solicitor 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.

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.


Frequently asked questions relating to New Street Mortgages transfer of equity