Recently asked questions relating to Newcastle Building Society transfer of equity
- My former wife are seeking to get a lawyer in place for a refinance with Newcastle Building Society. Transfer of Equity conveyancing is also necessaryI have used the different comparison based tools and the results are from all over UK. Is it important to appoint a conveyancing solicitor local to us?
- I already have a home loan with Newcastle Building Society and am maintaining my existing mortgaging but applying to have have the equity transferred to my name only so my ex will come off the title. How long does the whole transfer of equity process take?
- At what point do I cover the costs of stamp duty payable for the transfer of equity in my house in my sole name which is taking place simultaneously with a remortgage with Newcastle Building Society?
- Can I transfer the equity held in my property with my Newcastle Building Society mortgage?
- Will I have to pay any charges for a Transfer of Equity where the current home loan is with Newcastle Building Society?
- I got divorced four years ago. I simply never dealt with the change the ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. Newcastle Building Society is content to transfer the property and loan in my name (affordability checks done). Does my ex need a conveyancer?
- My dad passed away early last year leaving a loan-free property to me and my brother equally. Having continues to reside at the premises, there was a condition in her will saying the housecould not be sold for 2 years following her passing so he could continue to live there for a prescribed period. He now wishes to remain in the premises beyond the specified period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the conventional way to purchase my share?
Questions that your lawyer could ask about your Newcastle Building Society Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be removed from the title deeds?
Please provide a copy of your National Insurance Number?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Where you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Has consent been obtained from Newcastle Building Society to the proposed transfer of equity?
Please provide the name(s) and addresse(s) of those who jointly own the premises with you?
Caveats to be read in in addition to the above Newcastle Building Society transfer of equity Questions and Answers :
Tax and Legal
There are numerous potential 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 premises
Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such conditions are not strictly observed 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 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 is dependent on the market value of the property at finalisation 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.
Content 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. 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.