Frequently asked questions relating to St James Place transfer of equity
- My existing home loan is with St James Place. Can I transfer equity to someone under 18 years old?
- My friend and I got a joint mortgage with St James Place on a flat about a year ago. I am now thinking of purchasing a property by myself and my friend would like to buy me out. On the basis that we can settle on a figure what are the next steps? Is there likely to be any concerns with St James Place with him being solely liable for the total loan rather than only half of it?
- Will I have to pay any fees for a Transfer of Equity where the existing mortgage is with St James Place?
- I am considering refinancing my apartment in Heathfield
does my lawyer have to be on the St James Place Solicitor panel. The conveyancing also involves a transfer of equity.
- When it comes to transfer of equity conveyancing involving a remortgage with St James Place should I be invoiced value added tax 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 am looking for a conveyancing solicitor to handle my transfer of equity. St James Place are dealing with the remortgage. I considered asking my mortgage broker. I understand he may get a kickback for suggesting a firm, but also of benefit will be that he knows the conveyancer, has dealt with them before. Is my logic flawed?
- I am planning on removing a name from a joint mortgage and the St James Place require me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Wakefield
conveyancing solicitor to deal with the transfer of equity? They need to be on the St James Place conveyancing panel.
Examples of information requested in a conveyancing solicitor questionnaire relating to St James Place Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please let us know where you are making any payment for the Transfer of Equity and to whom and notify us any such sums?
Has consent been obtained from St James Place to the proposed transfer of equity?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Important warnings to consider in in addition to the above St James Place transfer of equity information :
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 St James Place conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such restrictions are not strictly observed 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 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 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 varies based on the valuation of the property at the conclusion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with St James Place.
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.