Recently asked questions relating to Newcastle Building Society transfer of equity

• Can I transfer the equity held in my property with my Newcastle Building Society mortgage?
• My ex-wife and I are searching for an affordable conveyancing solicitor to assist in a transfer of equity and refinance with Newcastle Building Society. I I am fearful of appointing the wrong one and there's lots of conveyancing organisations who do transfer of equity conveyancing out there...who do I opt for?
• Newcastle Building Society yesterday agreed I can take over the mortgage on my home. I had applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry as well?
• How do I go about adding or removing names (transfer of equity) to or from my Newcastle Building Society mortgage account?
• What are the average conveyancing costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Newcastle Building Society - and have been quoted Four Hundred pounds plus VAT by Newcastle Building Society's approved conveyancing solicitor, Have I been over quoted?
• My former husband are seeking to get a conveyancing solicitor in place for a refinance with Newcastle Building Society. Transfer of Equity conveyancing is also necessaryI have used the different rating based tools and the results are from all over UK. How necessary is it to have a lawyer local to us?
• Have recently split up with my ex of twenty years. I'm now back with my parents again and she wishes to remain in the flat and buy me out. What portion do I get. Is it 50% of the equity after discharging the mortgage with Newcastle Building Society? I assume proper valuations are required but I really need to be confident that I'm getting what I am entitled to

Sample of information requested in a conveyancing solicitor form relating to Newcastle Building Society Transfer of Equity

Important warnings to consider in supplemental the above Newcastle Building Society transfer of equity information :

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 premises

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.

Indemnity Insurance

If the transfer of equity is made pursuant to 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.

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 conveyancing solicitor 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.