Recently asked questions relating to Newbury Mortgage Services transfer of equity
- How and when do I incur stamp duty chargeable for the transfer of equity in my home in my name alone which is happening at the same time as a switching mortgage with Newbury Mortgage Services?
- I currently have a joint Newbury Mortgage Services mortgage with my brother and am looking into the possibility of him taking on the outstanding mortgage and subtracting myself from it, so as to enable me to buy a place with my soon-to-be-wife. The remaining mortgage is approx 175k, and the property value is about 450k. Is this a transfer of equity? Is stamp duty payable?
- What if my application doesn't meet Newbury Mortgage Services lending criteria for a transfer of equity?
- How do I go about adding or subtracting names (transfer of equity) to or from my Newbury Mortgage Services mortgage account?
- How much the typical legal fees are for a transfer of equity? I need to transfer equity and remortgage - new loan with Newbury Mortgage Services - and have been quoted £250 excluding VAT by Newbury Mortgage Services's approved conveyancer, Have I been over quoted?
- I am completing a Newbury Mortgage Services transfer of equity form and have arrived at the part concerning defaults etc. There are some debts that I have been discharging over a long period, in fact they have long since disappeared from my credit score. Do I need to set these out?
- I co-own a property in Romsey
, with a Newbury Mortgage Services mortgage with my ex partner. Him and his fiance are going to buy me out. We had approval from Newbury Mortgage Services to remove my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Newbury Mortgage Services (supposedly). Is it possible for us to do the Land Registry formalities?
Examples of information requested in a lawyer form relating to Newbury Mortgage Services Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please provide a copy of your National Insurance Number?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Can you provide the details of anyone who jointly owns the premises with you?
Important warnings to consider in conjunction with 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
Should the tenure of your property be leasehold, 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 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 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 market value of the property at the conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Newbury Mortgage Services your property may be repossessed.
Preparing the Transfer of Equity with a Newbury Mortgage Services 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 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 conveyancer 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.