Recently asked questions relating to Newcastle Building Society transfer of equity
- Is it sensible to stop the direct debit for my mortgage with Newcastle Building Society once a date for my remortgage and transfer of equity has been agreed?
- Three years ago I bought a apartment without my wife's name on the deeds. My conveyancing solicitor advised it is because she is not in the loan offer with Newcastle Building Society. Is it possible for me to put her name on the deeds?
- I am searching for an affordable conveyancing solicitor to help me sell in a transfer of equity and remortgage with Newcastle Building Society. I I am fearful of being overcharged but with various conveyancing firms who do transfer of equity conveyancing out there...how do I know which one to select?
- My mother passed away half a year ago leaving a unencumbered house to me and my half brother in equal shared. Having continues to reside at the premises, there was a condition in the will saying the premisescould not be sold for 2 years after her death so he could reside there for a while. He now says he would like to remain in the house beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the traditional way to purchase my equity?
- What should I be budgeting for when it comes to what legal costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Newcastle Building Society - and have been quoted £250 plus VAT by Newcastle Building Society's appointed conveyancing solicitor, Have I been over quoted?
- Can I apply to borrow more money from Newcastle Building Society as part of a Transfer of Equity?
- I am answering a Newcastle Building Society transfer of equity application and have come to the section that asks about debts etc. There are some debts that I have been discharging for a number of years, in fact they have long since disappeared from my credit score. Must I disclose these?
Examples of questions in a conveyancing solicitor questionnaire concerning a Newcastle Building Society Transfer of Equity
Is it the case that one of the registered owners passed away? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Who will be responsible for the costs of the Transfer of Equity?
Will there be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what figure
Can you give the name(s) and addresse(s) of those who jointly own the property with you?
Where you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
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, provisions in the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
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 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 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 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.
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.