Newcastle Building Society transfer of equity: q and a’s
- Taking into account that we have been a number of years separated I have decided to give up my interest in the apartment to my husband who is refinancing with Newcastle Building Society. Could this transfer of equity be done inside 28 days?
- I am considering mortgaging my property in Rye
does my lawyer have to be on the Newcastle Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
- Online reading suggests that solicitors are more expensive than licensed conveyancers when it comes to transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor if I need to be transferring equity and at the same time remortgaging with Newcastle Building Society
- I recently purchased a flat without my wife's name on the title documents. My conveyancer claimed it is due to the fact that she is not in the mortgage with Newcastle Building Society. Is it possible for me to put her name on the documents at HM Land Registry?
- 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 paperwork. Can you recommend a reasonably priced Sedgefield
conveyancer to deal with the transfer of equity? They need to be on the Newcastle Building Society conveyancing panel.
- I am answering a Newcastle Building Society transfer of equity application and have come to the part concerning defaults etc. I do some debts that I have been reducing since 2007, I understand that they have long since disappeared from my credit rating. Must I set these out?
- As things stand I have a joint Newcastle Building Society mortgage with my cousin and am looking into the possibility of him taking on the whole mortgage and removing myself from it, so as to enable me to buy somewhere with my soon-to-be-wife. The outstanding mortgage is approx 300k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty payable?
Questions that your conveyancing solicitor could ask in relation to your Newcastle Building Society Transfer of Equity
Will there be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what sums
Who will be responsible for the costs of the Transfer of Equity?
Has consent been obtained from Newcastle Building Society to the proposed transfer of equity?
Please provide the details of anyone to be added to the title deeds?
Would you like us to draw up a Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
General Advice to read in further to 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
Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such terms are not adhered to you may be in violation of 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 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 valuation of the property at finalisation 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 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 provided 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.