Recently asked questions relating to Newcastle Building Society transfer of equity
- My divorce is through as is the consent order. Now I must deal with the transfer of equity for the property and the Newcastle Building Society mortgage. I have called Newcastle Building Society for the transfer of equity forms. What are my next steps?
- I already have a home loan with Newcastle Building Society and am keeping my existing mortgaging but applying to have have the equity transferred to my name alone so my former partner will no longer be on the deeds. How long do Newcastle Building Society take to process the application?
- My partner and myself jointly own a investment property. I am a top rate tax payer. Preferably I wish to do a transfer of equity into her name to mitigate tax on rental income. If Newcastle Building Society are fine with this the legal fees are inexpensive. What are the implications when we sell? Would my GGT relief be lost.
- How do I go about adding or subtracting names (transfer of equity) to or from my Newcastle Building Society mortgage account?
- I currently have a joint Newcastle Building Society mortgage with my brother and am looking into the option of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to buy a property with my fiance. The remaining mortgage is in the region 200k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty payable?
- My current mortgage is with Newcastle Building Society. Can I transfer equity to someone who is not yet eighteen years old?
- I am in the process of removing a name from a joint mortgage and the Newcastle Building Society require me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Dunnington
conveyancing solicitor to deal with the transfer of equity? They need to be on the Newcastle Building Society conveyancing panel.
Questions that your lawyer could ask in relation to your Newcastle Building Society Transfer of Equity
Have you approached Newcastle Building Society to seek consent to the Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?
Will there 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 the same
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Caveats to be read in supplemental the above Newcastle Building Society transfer of equity Info :
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 Newcastle Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach 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 lawyer will check with Newcastle Building Society 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 Newcastle Building Society 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 the time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Newcastle Building Society your property may be repossessed.
Preparing the Transfer of Equity with a Newcastle Building Society 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 Newcastle Building Society 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.
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.
