LenderPanel.com

Find a Law Firm for your Transfer of Equity approved by
Newcastle Building Society

Sample questions relating to Newcastle Building Society transfer of equity

  • I already have a home loan with Newcastle Building Society and am retaining my existing mortgaging but seeking to have it in my name only so my ex won't be on it any longer. How long do Newcastle Building Society take to deal with the application?
  • My wife and I have 50:50 shares in a BTL. I am a higher rate tax payer. Ideally I would like to do a transfer of equity into her name to mitigate tax on the letting income. If Newcastle Building Society are fine with this the legal fees are not high. However what happens when we sell? As I would no longer be on the deeds am I giving up my CGT relief.
  • What if my application doesn't meet Newcastle Building Society lending criteria for a transfer of equity?
  • Can I apply to borrow more money from Newcastle Building Society as part of a Transfer of Equity?
  • My Newcastle Building Society mortgage we jointly entered into with ex, who is agreeable to be removed and put the house in my name alone. Newcastle Building Society have consented to the transfer of equity to my individual name. Do Newcastle Building Society call my employer to check my salary?
  • What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Newcastle Building Society?
  • I am under the impression we would need at least AP1 and TR1. Is this true?

Questions that your conveyancing solicitor is likely to ask about your Newcastle Building Society Transfer of Equity

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

Please list all persons who occupy the property, their respective ages and relationships to you.

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Please provide the name(s) and addresse(s) of anyone to be extracted from the title deeds?

Is it the case that one of the registered proprietors passed away? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..

Please provide a copy of your National Insurance Number?

Important warnings 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 properties

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 landlord. If such restrictions are not strictly observed you may be in violation 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 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 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 conclusion 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 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 contained within 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. 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