New Street Mortgages transfer of equity: q and a’s

• I am disposing of my share of a property in Warwick to the other co-owners fiance, they are reapplying to New Street Mortgages. We are in heated discussion as to who should pay the fees for the transfer of equity. Is this normally shared or is one party liable for the fees for?
• When it comes to transfer of equity conveyancing involving a remortgage with New Street Mortgages should I be charged value added tax on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
• Can I apply to request a further advance from New Street Mortgages as part of a Transfer of Equity?
• I am in the market for a dependable conveyancing solicitor to assist in a transfer of equity and refinance with New Street Mortgages. I I am fearful of by bill escalating out of control and there are lots of conveyancing organisations who do transfer of equity conveyancing out there...who do I opt for?
• I acquired a flat with my brother six years ago Since purchasing the property, we have both got married. We are now seeking to do a transfer of equity so my name is removed the New Street Mortgages mortgage. There is a significant difference between the value the New Street Mortgages hold and what the property would sell for currently. Can you offer any advice?
• What legal advice do I need when doing a transfer of equity where the home loan is to remain with New Street Mortgages?
• Law week I split up with my wife of 18 years. I'm now living with my parents again and she wants to stay in the flat and buy me out. What percentage do I get. Is it half of the equity after discharging the New Street Mortgages home loan? I assume proper valuations are required but I really need ensure that I'm getting what I am entitled to

Examples of information requested in a lawyer form concerning a New Street Mortgages Transfer of Equity

Information to consider in further to 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 premises

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.

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 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 varies based on the valuation of the property at the time of completion 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 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.