Top seven questions relating to Newbury Mortgage Services transfer of equity
- When it comes to transfer of equity conveyancing involving a remortgage with Newbury Mortgage Services should I be invoiced value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- My friend and I got a joint mortgage with Newbury Mortgage Services on a property in 2013. I am now looking to get a property on my own and my friend would like to buy me out. Assuming we can agree a figure where do we go? Would there be any potential problem with Newbury Mortgage Services with him being solely liable for the total mortgage rather than only part of it?
- What do I do if I am dissatisfied with the conveyancer who undertook our transfer of equity transaction?
- I recently bought a property without my fiance’s name on the deeds. My conveyancer claimed it is because she is not in the mortgage with Newbury Mortgage Services. Is it possible for me to put her name on the title?
- I am hoping to refinance my home in Crabtree
changing from Godiva Mortgages to Newbury Mortgage Services. The home is currently in joint names but wish for it to be in my sole name as and when I switch. My former partner is OK with this and is happy to sign a form but neither of us want to get a second lawyer involved.
- Can I apply to borrow more money from Newbury Mortgage Services as part of a Transfer of Equity?
- I co-own a apartment in Wakefield
, with a Newbury Mortgage Services loan with my former partner. Him and his fiance are going to buy me out. We had the go ahead from Newbury Mortgage Services to replace my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Newbury Mortgage Services (apparently). Is it possible for us to deal with the Land Registry formalities?
Sample of information requested in a lawyer questionnaire relating to Newbury Mortgage Services Transfer of Equity
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Please list all persons who occupy the property, their respective ages and relationships to you.
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?
Has consent been obtained from Newbury Mortgage Services to the proposed transfer of equity?
Who will be responsible for the costs of the Transfer of Equity?
Would you like us to draft you Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Important warnings to consider in supporting the above Newbury Mortgage Services transfer of equity information :
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, 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 terms are not adhered to 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 as a result of 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 conveyancing.
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 conveyancer 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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Content 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.