Frequently asked questions relating to New Street Mortgages transfer of equity
- I am hoping to refinance my maisonette in Dunnington
moving from Skipton to New Street Mortgages. The flat is jointly owned but propose for it to be in my sole name when I remortgage. My husband has agreed to this and is happy to sign a form but neither of us want to incur lawyer charges.
- Been reviewing consumer forums that solicitors are more expensive than conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor where I need to be transferring equity and at the same time switching mortgage with New Street Mortgages
- Our financial adviser has suggested using their conveyancer for the Transfer of Equity plus remortgage with New Street Mortgages - Is it not simpler advisable to just use them?
- As things stand I have a joint New Street Mortgages mortgage with my cousin and am looking into the feasibility of him taking on the outstanding mortgage and subtracting myself from it, so as to enable me to buy a property with my fiance. The outstanding mortgage is in the region 175k, and the property value is about 500k. Is this a transfer of equity? Is land tax payable?
- At what point do I pay stamp duty due for the transfer of equity in my home in my name alone which is taking place at the same time as a switching mortgage with New Street Mortgages?
- My father passed away seven months ago leaving a unencumbered semi to me and my step brother in equal shared. Having continues to reside at the premises, there was a condition in her will specifying that the housecould not be sold for 24 months following her passing so he could remain there for a specified time frame. He now wishes to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the traditional way to purchase my share?
- Three years ago I bought a property without my fiance’s name on the ownership paperwork. My lawyer claimed it is due to the fact that she is not in the mortgage with New Street Mortgages. Is it possible for me to add her name on the documents at HM Land Registry?
Examples of information requested in a conveyancing solicitor questionnaire relating to New Street Mortgages Transfer of Equity
Can you provide the details of anyone who jointly owns the premises with you?
Where you are adding a person 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” Questionnaire.
If 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?
Please clarify where you are making any payment for the Transfer of Equity and to whom and disclose any such sums?
Please give the details of anyone to be added to the property title?
Please give the name(s) and addresse(s) of anyone to be extracted from the title deeds?
Information to consider in in addition to 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 have a requirement for notices to be served and that you have a license to do so from the freeholder. If such terms are not adhered to you may be in violation of your covenants under the lease. This could potentially result in 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 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 is dependent on the valuation of the property at finalisation 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 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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information contained within 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.