Common questions relating to Newcastle Building Society transfer of equity
- I bought a house with my cousin in 2010 Since then, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Newcastle Building Society mortgage. There is a significant difference between the value the Newcastle Building Society hold and what the property would sell for currently. Can you offer any advice?
- Is it possible to transfer the equity held in my property with my Newcastle Building Society home loan?
- Me and my former fiance and I are are looking to find an affordable conveyancing solicitor to help me sell in a transfer of equity and refinance with Newcastle Building Society. I really don't want to get ripped off and there are so many conveyancing firms who do transfer of equity conveyancing to choose from...how do I know which one is best select?
- My ex are looking to get a lawyer lined up for a refinance with Newcastle Building Society. Transfer of Equity conveyancing is also neededI have used the different rating based services and the results are from all over UK. Is it important to have a lawyer local to us?
- When it comes to transfer of equity conveyancing involving refinance with Newcastle Building Society should I be invoiced VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- My current home loan is with Newcastle Building Society. Can I transfer equity to someone less than 18 years old?
- I already have a home loan with Newcastle Building Society and am retaining my existing mortgaging but applying to have it in my name only so my ex won't be on it any longer. How long do Newcastle Building Society take to deal with the application?
Information that may be required from your lawyer may ask in relation to your Newcastle Building Society Transfer of Equity
Please provide a copy of your National Insurance Number?
Please clarify if you are making any payment for the Transfer of Equity and to whom and specify the amount?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
If are going to hold 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 confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Is it the case that one of the registered owners died? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Information to consider in further to the above Newcastle Building Society transfer of equity Advice :
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 Newcastle Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such terms are not adhered to you may be in breach 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 conveyancing solicitor 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 is dependent 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 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 conveyancer 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 does not constitute 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.