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Newbury Mortgage Services transfer of equity: q and a’s

  • I am thinking of refinancing my property in Romsey does my lawyer have to be on the Newbury Mortgage Services Solicitor panel. The conveyancing also involves a transfer of equity.
  • Me and my partner co-own a property in Wakefield . Home loan is with Newbury Mortgage Services. I wish to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Is this likely to be straightforward?
  • Is it sensible to cancel my mortgage payments with Newbury Mortgage Services as soon as a date for my remortgage and transfer of equity has been set?
  • At what stage do I incur the Stamp Duty Land Tax chargeable for the transfer of equity in my home in my sole name which is taking place at the same time as a remortgage with Newbury Mortgage Services?
  • What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Newbury Mortgage Services?
  • I am completing a Newbury Mortgage Services transfer of equity application and have come to the part regarding debts etc. There are some debts that I have been paying off for a number of years, in fact they have long since disappeared from my credit records. Am I obliged to set these out?
  • Newbury Mortgage Services have today agreed I can take over the home loan on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry in addition?

Examples of questions in a conveyancer form concerning a Newbury Mortgage Services Transfer of Equity

Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?

Is it the case that one of the registered owners passed away? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..

If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Please provide the name(s) and addresse(s) of anyone to be extracted from the title deeds?

Please clarify if you are making any payment for the Transfer of Equity and to whom and notify us any such sums?

Please provide a copy of your National Insurance Number?

Caveats to be read in further to 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

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 your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to 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 lawyer 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.
Your property may be repossessed if you do not keep up repayments on your mortgage with Newbury Mortgage Services.

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 provided 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.


Frequently asked questions relating to Newbury Mortgage Services transfer of equity