Recently asked questions relating to Newcastle Building Society transfer of equity
- My decree absolute is through as is the consent order. Now I must address the transfer of equity for the property and the Newcastle Building Society home loan. I have contacted Newcastle Building Society for the transfer of equity forms. What are my next steps?
- At what point do I cover the costs of stamp duty due for the transfer of equity in my home in my name alone which is taking place at the same time as a switching mortgage via Newcastle Building Society?
- What do I do if I am not happy with the lawyer who conducted our transfer of equity transaction?
- I co-own a property in Sedgefield
, with a Newcastle Building Society loan with my ex husband. He and his new partner are going to acquire my share. We had the go ahead from Newcastle Building Society to substitute my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Newcastle Building Society (supposedly). Is it possible for us to do the Land Registry change?
- Am I best advised stop my mortgage payments with Newcastle Building Society once a date for my remortgage and transfer of equity has been agreed?
- I plan to refinance my apartment in Miles Platting
moving from Natwest to Newcastle Building Society. The maisonette is currently in joint names but I would like it to be in my name only once I remortgage. My former partner has agreed to this and is happy to transfer equity but neither of us want to incur conveyancer fees.
- My father passed away early last year leaving a unencumbered house to me and my brother equally. Having continues to reside at the house, there was a clause in her will saying the premisescould not be sold for three years following her death so he could reside there for a specified time frame. He now says he would like to remain in the property beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the usual way to acquire my half from me?
Sample of questions in a lawyer form concerning a Newcastle Building Society Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Would you like us to prepare Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Is there to be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Please give the name(s) and addresse(s) of anyone to be removed from the property title?
Please give the details of anyone to be added to the property title?
Information to consider in in addition to the above Newcastle Building Society 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 Newcastle Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
If your property is leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed 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 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 conveyancer 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 the time of completion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Newcastle Building Society.
Preparing the Transfer of Equity with a Newcastle Building Society Mortgage
When it comes to preparing the the Land Registry documents your conveyancing solicitor 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 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.