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Newcastle Building Society

Recently asked questions relating to Newcastle Building Society transfer of equity

  • I am considering refinancing my apartment in Friern Barnet does my lawyer need to be on the Newcastle Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
  • Am I best advised stop the direct debit for my mortgage with Newcastle Building Society as soon as a date for my remortgage and transfer of equity has been set?
  • I already have a home loan with Newcastle Building Society and am keeping my current mortgaging but wish to have have the equity transferred to my name alone so my former husband won't be on it any longer. How long do Newcastle Building Society take to deal with the application?
  • Last year bought a house without my wife's name on the deeds. My conveyancer advised it is because she was not in the mortgage with Newcastle Building Society. I'm wondering is there any way that I can put her name on the deeds?
  • Taking into account that we have been 4 years apart I have decided to relinquish up my share of the property to my husband who is refinancing with Newcastle Building Society. Can a transfer of equity be done inside four weeks?
  • I am looking for a conveyancing solicitor to deal with my transfer of equity. Newcastle Building Society have been approached for a refinancing. I thought of asking my mortgage broker. I understand he may get a referral fee for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Any flaws you see in this way of thinking?
  • My divorce has gone through as is the consent order. Now I must address the transfer of equity at the land registry and the Newcastle Building Society mortgage. I have asked Newcastle Building Society for the transfer of equity application. What do I do now?

Questions that your conveyancing solicitor may ask regarding your Newcastle Building Society Transfer of Equity

Please provide the details of anyone to be removed from the property title?

Can you give the name(s) and addresse(s) of anyone who jointly owns the property with you?

Is the transfer of equity subject to a court order? If yes please supply a copy

If you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Who will be responsible for the costs of the Transfer of Equity?

Please give the details of anyone to be added to the property title?

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

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 require that you obtain the consent of 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 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 is dependent on the valuation 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 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 lawyer 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.


Frequently asked questions relating to Newcastle Building Society transfer of equity