Common questions relating to Newcastle Building Society transfer of equity
- What is the process for having a person removed off the title documents to a property where the home loan is with Newcastle Building Society
- I got my Decree Absolute four years ago. For some reason I never got around to change the ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Newcastle Building Society is willing to transfer the property and loan in my name (affordability checks done). Does she need a conveyancer?
- At what stage do I pay 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 remortgage with Newcastle Building Society?
- Our financial adviser has recommended their conveyancing solicitor for my Transfer of Equity plus remortgage with Newcastle Building Society - Surely it’s better to just use them?
- My fiance and I have 50:50 shares in a BTL. I am a top rate tax payer. Preferably I would like to complete a transfer of equity into her name in order mitigate tax on rental income. If Newcastle Building Society are content with this the legal fees are not high. However what happens when we sell? Would my GGT relief be lost.
- Two years ago I bought a property without my wife's name on the ownership paperwork. My lawyer claimed it is because she is not in the loan offer with Newcastle Building Society. I'm wondering is there any way that I can add her name on the deeds?
- My divorce has gone through as is the consent order. Now I must sort out the transfer of equity for the property and the Newcastle Building Society mortgage. I have asked Newcastle Building Society for the transfer of equity application. What do I do now?
Examples of information requested in a conveyancing solicitor questionnaire relating to Newcastle Building Society 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
Who will be responsible for the costs of the Transfer of Equity?
Please provide a copy of your National Insurance Number?
Please provide the details of anyone who jointly owns the premises with you?
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Information to consider in supplemental the above Newcastle Building Society transfer of equity Questions and Answers :
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
If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in breach of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to 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 is dependent on the market value of the property at finalisation of the transfer of equity conveyancing.
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 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 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 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.