Top seven questions relating to Newbury Mortgage Services transfer of equity

• Do I need legal representation when doing a transfer of equity where the home loan is to remain with Newbury Mortgage Services?
• My Newbury Mortgage Services mortgage is in joint names with ex, who is agreeable to come off the mortgage and put the house in my name alone. Newbury Mortgage Services will permit the transfer of equity to my individual name. Will Newbury Mortgage Services call my boss to check my salary?
• Newbury Mortgage Services have just agreed I can take over the mortgage on my home. I have applied for a transfer of equity but is this a transfer of ownership at HMLR on top?
• What is the process for adding or removing names (transfer of equity) to or from my Newbury Mortgage Services mortgage account?
• I got my Decree Absolute in 2010. I simply never got around to transfer ownership from both our names to my sole name. I am ready to do that and so is she. Transfer-of-equity is needed. Newbury Mortgage Services is willing to transfer the full equity in my name (affordability checks done). Does my ex need any legal representation?
• I intend to remortgage my maisonette in Rye switching from Chelsea BS to Newbury Mortgage Services. The apartment is jointly owned but intend for it to be in my name only once I transfer. My husband has verbally consented to this and is happy to transfer equity but neither of us want to get a second conveyancer involved.
• I am trying to find a conveyancer to handle my transfer of equity. Newbury Mortgage Services have been approached for a refinancing. I thought of asking my financial adviser. I understand he will likely receive a referral fee for recommending a firm, but also of benefit will be that he knows the conveyancer, has dealt with them before. Any flaws you see in this way of thinking?

Information that may be required from your lawyer could ask regarding your Newbury Mortgage Services Transfer of Equity

Information to consider in supporting the above Newbury Mortgage Services transfer of equity Questions and Answers :

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 Newbury Mortgage Services conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in the lease may require that you obtain the consent of 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 Newbury Mortgage Services 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 Newbury Mortgage Services 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.

Preparing the Transfer of Equity with a Newbury Mortgage Services 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 Newbury Mortgage Services 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 contained within 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.