Common questions relating to St James Place transfer of equity
- I am disposing of my equity in house in Woodside to my co-owners fiance, they are reapplying to St James Place. We are haggling as to who should pay the charges for the transfer of equity. Is this usually shared or is one party obliged to cover the legal bill?
- What is the process for adding or subtracting names (transfer of equity) to or from my St James Place mortgage account?
- What is the process for having someone removed from the title documents to a property if the home loan is with St James Place
- I am answering a St James Place transfer of equity request and have arrived at the section that asks about defaults etc. I do some debts that I have been clearing since 2007, in fact they have long since disappeared from my credit score. Am I obliged to set these out?
- My father passed away seven months ago leaving a unencumbered bungalow to me and my half brother equally. Having continues to reside at the property, there was a clause in the will specifying that the premisescould not be sold for 24 months after her passing so he could reside there for a while. He now wants to remain in the premises beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the traditional way to purchase my share?
- I am am in need of a conveyancer to undertake my transfer of equity. St James Place are dealing with the remortgage. I thought of asking my mortgage broker. I am lead to believe he may get a referral fee for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Is my logic correct?
- How much the typical solicitors charges are for a transfer of equity? I need to transfer equity and refinance - new loan with St James Place - and have been quoted £350 plus VAT by St James Place's appointed conveyancing solicitor, Is this is a good price or not?
Questions that your conveyancing solicitor could ask in relation to your St James Place Transfer of Equity
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Would you like us to draw up a Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Can you give the details of anyone who jointly owns the property with you?
If you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Who will be responsible for the costs of the Transfer of Equity?
Caveats to be read in in addition to the above St James Place 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 St James Place conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from 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.
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 St James Place 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 St James Place 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.
If you do not keep up the payments on your mortgage with St James Place your property may be repossessed.
Preparing the Transfer of Equity with a St James Place 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 St James Place 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.