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Newbury Mortgage Services

Frequently asked questions relating to Newbury Mortgage Services transfer of equity

  • Is there such a thing a transfer of equity stamp duty calculator?
  • Am I best advised cancel the direct debit for my mortgage with Newbury Mortgage Services once a date for my remortgage and transfer of equity has been set?
  • Me and a friend got a joint mortgage with Newbury Mortgage Services on a house a couple of years ago. I am now thinking of purchasing a flat on my own and my friend would like to buy me out. Once we have agreed a price what are the next steps? Is there likely to be any issue with Newbury Mortgage Services with him being responsible for the total mortgage as opposed to only half of it?
  • How and when do I cover the costs of stamp duty chargeable for the transfer of equity in my house in my sole name which is happening at the same time as a remortgage via Newbury Mortgage Services?
  • As things stand I have a joint Newbury Mortgage Services mortgage with my brother and am looking into the option of him taking on the whole mortgage and subtracting myself from it, so as to enable me to purchase a property with my soon-to-be-wife. The remaining mortgage is about 300k, and the property value is approx 600k. Is this a transfer of equity? Is stamp duty due?
  • What do I need to do when it comes adding or removing names (transfer of equity) to or from my Newbury Mortgage Services mortgage account?
  • How much the typical conveyancing costs are for a transfer of equity? I'm in the process of remortgaging - moving over to Newbury Mortgage Services - and have been quoted £250 excluding VAT by Newbury Mortgage Services's approved conveyancing solicitor, Is this a reasonable price?

Examples of questions in a lawyer form relating to Newbury Mortgage Services Transfer of Equity

Who will be responsible for the costs of the Transfer of Equity?

Have you approached Newbury Mortgage Services to obtain consent to the Transfer of Equity

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Is there to be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what amounts

Would you like us to prepare Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?

Please list all persons who occupy the property, their respective ages and relationships to you.

Caveats to be read 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 titles

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 terms are not adhered to you may be in violation of 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 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 is dependent 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 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 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.


Frequently asked questions relating to Newbury Mortgage Services transfer of equity