LenderPanel.com

Find a Law Firm approved by
Newcastle Building Society

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.

Frequently asked questions relating to Newcastle Building Society transfer of equity

  • When it comes to transfer of equity conveyancing involving a remortgage with Newcastle Building Society should I be charged VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
  • I currently have a joint Newcastle Building Society mortgage with my brother and am investigating the option of him assuming responsibility for the whole mortgage and subtracting myself from it, so as to enable me to purchase somewhere with my soon-to-be-wife. The remaining mortgage is in the region 200k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty payable?
  • Me and my partner co-own a house in Miles Platting . Home loan is with Newcastle Building Society. I would like to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Is this likely to be straightforward?
  • What is the process for adding or subtracting names (transfer of equity) to or from my Newcastle Building Society mortgage account?
  • At what stage do I incur the Stamp Duty Land Tax payable for the transfer of equity in my property in my name alone which is happening simultaneously with a remortgage via Newcastle Building Society?
  • My Newcastle Building Society home loan is in joint names with ex, who has agreed to come off the mortgage and let me have the property. Newcastle Building Society have consented to the transfer of equity to my individual name. Will Newcastle Building Society contact my company to check my salary?
  • What legal advice do I need when doing a transfer of equity where the home loan is to remain with Newcastle Building Society?

Questions that your lawyer is likely to ask regarding your Newcastle Building Society Transfer of Equity

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?

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

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?

We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)

Where you 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?

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Information to consider in further to 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 require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach of the lease. This could potentially result in 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 valuation of the property at the time of completion of the transfer of equity transaction.
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 conveyancing solicitor 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.


Frequently asked questions relating to Newcastle Building Society transfer of equity