Top seven questions relating to Newcastle Building Society transfer of equity
- Last year purchased a house without my fiance’s name on the title. My lawyer advised it is because she was not in the mortgage with Newcastle Building Society. Is it possible for me to add her name on the documents at HMLR?
- My divorce is through as is the consent order. Now I have to sort out the transfer of equity for the property and the Newcastle Building Society home loan. I have contacted Newcastle Building Society for the transfer of equity application. What are my next steps?
- I already have a mortgage with Newcastle Building Society and am retaining my current mortgaging but wish to have it in my name alone so my former husband will be removed from the mortgage. How long does the whole transfer of equity process take?
- I acquired a property with my brother in 2008 Since purchasing the property, we have both got married. We are now seeking to do a transfer of equity so my name is removed the Newcastle Building Society mortgage. There is a significant difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
- I plan to refinance my apartment in Heathfield
changing from Yorkshire Building Society to Newcastle Building Society. The flat is jointly owned but I would like it to be in my sole name when I remortgage. My husband is OK with this and is happy to sign a form but neither of us want to get a second conveyancing solicitor involved.
- My partner and myself jointly own a BTL. I am a top rate tax payer. Preferably I wish to do a transfer of equity to her sole name to reduce our tax on the letting income. If Newcastle Building Society are fine with this the legal fees are not prohibitive. However what happens when we dispose of the property? Would my GGT relief be lost.
- I currently have a joint Newcastle Building Society mortgage with my brother and am looking into the feasibility of him taking on the outstanding mortgage and extracting myself from it, so as to enable me to purchase a place with my soon-to-be-wife. The outstanding mortgage is about 175k, and the property value is approx 600k. Is this a transfer of equity? Is land tax due?
Examples of questions in a lawyer 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 incur the further fee (beyond the Transfer of Equity fee)?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please provide the details of anyone to be removed from the title deeds?
Is it the case that one of the registered owners died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Have you approached Newcastle Building Society to obtain consent to the Transfer of Equity
Where you 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?
Information to consider in supplemental 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 conditions are not strictly observed 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 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 conclusion of the transfer of equity transaction.
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 conveyancer 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.