Sample questions relating to Newcastle Building Society transfer of equity
- My existing home loan is with Newcastle Building Society. Can I transfer equity to someone less than 18 years old?
- Me and a friend got a joint mortgage with Newcastle Building Society on a flat in 2013. I am now thinking of purchasing a flat on my own and my friend would like to buy me out. Assuming we can agree a price what happens next? Would there be any potential concerns with Newcastle Building Society with him being responsible for the total loan rather than only part of it?
- Will I incur any charges for a Transfer of Equity where the existing mortgage is with Newcastle Building Society?
- 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 conveyancing. Can you recommend a reasonably priced Ampthill lawyer to deal with the transfer of equity? They need to be on the Newcastle Building Society conveyancing panel.
- My divorce is through as is the consent order. Now I have to address the transfer of equity at the land registry and the Newcastle Building Society home loan. I have contacted Newcastle Building Society for the transfer of equity application. What are my next steps?
- When it comes to transfer of equity conveyancing involving a remortgage with Newcastle Building Society should I be invoiced value added tax on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- I am am in need of a lawyer to undertake my transfer of equity. Newcastle Building Society have been approached for a remortgage. I considered asking my financial adviser. I understand he may receive a kickback for recommending someone, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Is my logic misguided?
Sample of questions in a conveyancing solicitor questionnaire relating to Newcastle Building Society Transfer of Equity
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
Has consent been obtained from Newcastle Building Society to the proposed transfer of equity?
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please inform us where you are providing any payment for the Transfer of Equity and to whom and specify any such sums?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please give the details of anyone to be extracted from the title deeds?
Important warnings to consider in further to the above Newcastle Building Society transfer of equity Advice :
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, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach of 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 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 varies based on the market value 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 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.