Top seven questions relating to Newcastle Building Society transfer of equity
- I am looking for a conveyancer to undertake my transfer of equity. Newcastle Building Society have been approached for a remortgage. I thought of asking my financial adviser. I understand he will likely get a kickback for recommending someone, but also of benefit will be that he knows the conveyancer, has dealt with them before. Is my logic misguided?
- Is there such a thing a transfer of equity stamp duty calculator?
- I got divorced in 2011. I simply never got around to change the ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Newcastle Building Society is happy to transfer the full equity in my name (financial checks done). Does my ex need a lawyer?
- I recently bought a flat without my partner's name on the title documents. My conveyancing solicitor said it is because she was not in the mortgage with Newcastle Building Society. Is it possible for me to put her name on the deeds?
- My brother and I got a joint mortgage with Newcastle Building Society on a house in 2013. I am now looking to get a house on my own and my friend would like to buy me out. On the basis that we can settle on an amount 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?
- I am in the process of remortgaging my property in Crabtree
does my lawyer need to be on the Newcastle Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
- I bought a property with a friend six years ago Since then, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the Newcastle Building Society mortgage. There is a significant difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
Sample of information requested in a conveyancer questionnaire concerning a Newcastle Building Society Transfer of Equity
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Is it the case that one of the registered owners passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please provide the details of anyone to be removed from the property title?
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.
Have you approached Newcastle Building Society to obtain consent to the Transfer of Equity
General Advice to read in supporting the above Newcastle Building Society transfer of equity Advice :
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
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in breach of your covenants under 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.
If you do not keep up the payments on your mortgage with Newcastle Building Society your property may be repossessed.
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 conveyancing solicitor 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.