Top seven questions relating to St James Place transfer of equity
- What are the average solicitors fees are for a transfer of equity? I need to transfer equity and refinance - new loan with St James Place - and have been quoted £250 including VAT by St James Place's approved conveyancing solicitor, Is this a reasonable price?
- I currently have a joint St James Place mortgage with my cousin and am investigating the feasibility of him taking on the outstanding mortgage and extracting myself from it, to enable me to buy somewhere with my fiance. The outstanding mortgage is about 250k, and the property value is approx 600k. Is this a transfer of equity? Is land tax payable?
- Me and my partner co-own a flat in Heathfield
. Mortgage is with St James Place. I wish to transfer full ownership to him with no payment of money but without using a conveyancing solicitor. Is this likely to be simple?
- My St James Place mortgage we jointly entered into with ex, he has agreed to come off the deeds and put the house in my name alone. St James Place will permit the transfer of equity to my individual name. Do St James Place contact my boss to confirm my salary?
- I am trying to find a conveyancing solicitor to undertake my transfer of equity. St James Place have been approached for a refinancing. I considered asking my mortgage broker. I am lead to believe he may get a kickback for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Is my logic flawed?
- I already have a mortgage with St James Place and am retaining my existing mortgaging but seeking to have have the equity transferred to my name only so my former partner won't be on it any longer. How long do St James Place take to process the application?
- Am I best advised cancel the direct debit for my mortgage with St James Place once a date for my remortgage and transfer of equity has been set?
Questions that your conveyancing solicitor is likely to ask about your St James Place Transfer of Equity
Please give the details of anyone to be added to the property title?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
If you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Can you provide the details of those who jointly own the premises with you?
Please let us know of you wish us to draw up a Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
Will there be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same
Information to consider in in addition to the above St James Place transfer of equity Info :
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 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 landlord. If such conditions are not complied with you may be in violation 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 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 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 time of completion of the transfer of equity conveyancing.
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 conveyancing solicitor 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 conveyancing solicitor 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.