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Are you in need of a Transfer of Equity with a Newcastle Building Society mortgage? Failing to check that a lawyer is on the Newcastle Building Society list of approved solicitors can put your transfer at risk of delay or failure. Only LenderPanel.com provides a subset of authorised conveyancers for over 130 lenders.

Questions and answers: Newcastle Building Society transfer of equity

  • Our mortgage broker has recommended their conveyancing solicitor for our Transfer of Equity plus remortgage with Newcastle Building Society - won’t it be better to just instruct them?
  • I jointly own a apartment in Dunnington , with a Newcastle Building Society mortgage with my ex partner. Him and his fiance are going to acquire my share. We had the go ahead from Newcastle Building Society to replace my name with hers. The transfer of equity has to be done by a lawyer for Newcastle Building Society (supposedly). Is it possible for us to deal with the Land Registry change?
  • Will I incur any charges for a Transfer of Equity where the existing mortgage is with Newcastle Building Society?
  • My current mortgage is with Newcastle Building Society. Can I transfer equity to someone less than eighteen years old?
  • I am in the process of refinancing my home in Rye does my lawyer need to be on the Newcastle Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
  • As things stand I have a joint Newcastle Building Society mortgage with my brother and am investigating the feasibility of him assuming responsibility for the outstanding mortgage and extracting myself from it, so as to enable me to purchase a property with my soon-to-be-wife. The remaining mortgage is about 250k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty due?
  • I plan to refinance my apartment in Timperley switching from Santander to Newcastle Building Society. The apartment is jointly owned but intend for it to be in my sole name when I remortgage. My wife has verbally consented to this and is happy to transfer equity but neither of us want to get a second lawyer involved.

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

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

Please clarify if you are making any payment for the Transfer of Equity and to whom and notify us the amount?

Please provide a copy of your National Insurance Number?

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

Would you like us to prepare Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?

If 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?

Caveats to be read in further to 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 premises

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of 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 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 conveyancing solicitor 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 finalisation 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 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 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