Common questions relating to Newcastle Building Society transfer of equity

• What are my options where I am dissatisfied with the conveyancing solicitor who conducted our transfer of equity transaction?
• Will I have to pay any charges for a Transfer of Equity where the current home loan is with Newcastle Building Society?
• Is it possible to apply to request more money from Newcastle Building Society as part of a Transfer of Equity?
• Law week I split up with my ex of 18 years. I'm now living with my mum and dad and she wishes to remain in the flat and buy me out. What portion am I entitled to. Is it 50% of the equity after paying off the mortgage with Newcastle Building Society? I assume proper valuations are necessary but I would like to be confident that I'm getting what I am entitled to
• My divorce is through as is the consent order. Now I need to deal with 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 am transferring my share of a house in Hendon to my co-owners fiance, they are sticking with Newcastle Building Society as the the existing mortgage company. We are haggling as to who must pay the fees for the transfer of equity. Is this normally split or is one party liable for the costs of?
• What is the process for adding or removing names (transfer of equity) to or from my Newcastle Building Society mortgage account?

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

Caveats to be read in supporting the above Newcastle Building Society transfer of equity Info :

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 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 landlord. If such conditions are not complied with you may be in breach 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 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 is dependent on the market value of the property at the conclusion of the transfer of equity transaction.

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 lawyer 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.