Common questions relating to Newcastle Building Society transfer of equity

• I already have a mortgage with Newcastle Building Society and am maintaining my current mortgaging but wish to have it in my sole name so my ex won't be on it any longer. How long does the whole transfer of equity process take?
• What is the process for having someone removed from the deeds to a house where the mortgage is with Newcastle Building Society
• Newcastle Building Society have today agreed I can take over the home loan on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry as well?
• I currently have a joint Newcastle Building Society mortgage with my cousin and am investigating the feasibility of him assuming responsibility for the outstanding mortgage and extracting myself from it, so as to enable me to buy a property with my partner. The outstanding mortgage is approx 175k, and the property value is about 500k. Is this a transfer of equity? Is land tax involved?
• My former wife are planning to get a conveyancer lined up for a new mortgage with Newcastle Building Society. Transfer of Equity conveyancing is also necessaryI have used the different rating based websites and the results are from all over the country. Is it important to instruct a conveyancer local to us?
• Will I incur any charges for a Transfer of Equity where the existing home loan 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 to carry out the legalities. Can you recommend a reasonably priced Blaenavon to deal with the transfer of equity? They need to be on the Newcastle Building Society conveyancing panel.

Sample of information requested in a conveyancer questionnaire relating to Newcastle Building Society Transfer of Equity

Information to consider in further to 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 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 restrictions are not strictly observed you may be in violation of your covenants under the lease. This could potentially result in 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 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 varies based on the market value of the property at the time of completion of the transfer of equity transaction.

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 provided on 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. Lender Panel.com Ltd will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.