Top seven questions relating to Newcastle Building Society transfer of equity

• Last year bought a house without my fiance’s name on the title documents. My conveyancer said it is because she was not in the mortgage with Newcastle Building Society. Is it possible for me to put her name on the documents at HMLR?
• What legal advice do I need when doing a transfer of equity where the home loan is to remain with Newcastle Building Society?
• I am searching for an affordable conveyancing lawyer to help me sell in a transfer of equity and remortgage with Newcastle Building Society. I want to avoid being ripped off but with plenty conveyancing organisations who do transfer of equity conveyancing to choose from...how do I know which one to appoint?
• My existing mortgage is with Newcastle Building Society. Can I transfer equity to someone who is not yet 18 years old?
• I jointly own a flat in Sedgefield , with a Newcastle Building Society mortgage with my ex husband. Him and his fiance are going to buy me out. 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 (apparently). In order to save fees can I deal with the Land Registry change?
• Can I apply to borrow a further advance from Newcastle Building Society as part of a Transfer of Equity?
• I am in the process of removing a name from a joint mortgage and the Newcastle Building Society require me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Winchelsea conveyancer to deal with the transfer of equity? They need to be on the Newcastle Building Society conveyancing panel.

Information that may be required from your conveyancing solicitor may ask regarding your Newcastle Building Society Transfer of Equity

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 restrictions are not strictly observed you may be in breach of your covenants under 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 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 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 varies based on the market value of the property at the time of completion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Newcastle Building Society 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 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.

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.