Top seven questions relating to Newbury Mortgage Services transfer of equity
- I am am in need of a conveyancing solicitor to undertake my transfer of equity. Newbury Mortgage Services are dealing with the refinancing. I thought of asking my mortgage broker. I am lead to believe he may get a kickback for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Any flaws you see in this way of thinking?
- After four years separated I have made the decision to give up my share of the apartment to my husband who is refinancing with Newbury Mortgage Services. Can a transfer of equity be done inside four weeks?
- I already have a mortgage with Newbury Mortgage Services and am maintaining my existing mortgaging but seeking to have it in my name only so my former partner won't be on it any longer. How long can it take for the forms to be processed?
- I am considering refinancing my flat in Crabtree
does my lawyer have to be on the Newbury Mortgage Services Conveyancing panel. The conveyancing also involves a transfer of equity.
- As things stand I have a joint Newbury Mortgage Services mortgage with my cousin and am investigating the feasibility of him taking on the outstanding mortgage and removing myself from it, so as to enable me to purchase a property with my fiance. The remaining mortgage is approx 175k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax payable?
- My friend and I got a joint mortgage with Newbury Mortgage Services on a apartment about a year ago. I am now looking to get a apartment on my own and my friend would like to buy me out. Assuming we can agree a price what are the next steps? Is there likely to be any problem with Newbury Mortgage Services with him being responsible for the total mortgage as opposed to only part of it?
- Do I need legal advice when doing a transfer of equity where the home loan is to remain with Newbury Mortgage Services?
Sample of information requested in a lawyer form concerning a Newbury Mortgage Services Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Is the transfer of equity subject to a court order? If yes please supply a copy
If you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Who will be responsible for the costs of the Transfer of Equity?
Please provide a copy of your National Insurance Number?
Is it the case that one of the registered owners passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Important warnings to consider in supporting the above Newbury Mortgage Services transfer of equity Advice :
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 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 have a requirement for notices to be served and that you have a license to do so from the freeholder. 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.
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 valuation of the property at finalisation 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 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.