Questions and answers: Together Personal Finance transfer of equity
- What are my options where I am not happy with the conveyancing solicitor who conducted our transfer of equity conveyancing?
- What if my application doesn't meet Together Personal Finance lending criteria for a transfer of equity?
- My wife and I have equal shares in a buy to let. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity into her name with a view to reduce our tax on the letting income. If Together Personal Finance are fine with this the legal fees are not prohibitive. However what happens when we sell? As I would no longer be on the title documents would I lose my CGT relief.
- I currently have a joint Together Personal Finance mortgage with my brother and am looking into the possibility of him assuming responsibility for the whole mortgage and subtracting myself from it, so as to enable me to buy a property with my partner. The outstanding mortgage is approx 200k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty due?
- I am filling out a Together Personal Finance transfer of equity request and have come to the questions that asks about debts etc. There are some debts that I have been reducing over a long period, I understand that they no longer remain my credit score. Must I declare these?
- Have recently separated from my wife of thirty years. I'm now living with my parents again and she wants to remain in the flat and pay me off. What percentage am I entitled to. Is it 50% of the equity after discharging the mortgage with Together Personal Finance? I assume proper valuations are required but I really need ensure that I'm getting the best deal
- Me and a friend got a joint mortgage with Together Personal Finance on a house in 2013. I am now looking to get a property by myself and my friend would like to buy me out. Once we have agreed a figure where do we go? Would there be any potential issue with Together Personal Finance with him being on the hook for the total mortgage rather than only half of it?
Information that may be required from your conveyancing solicitor could ask about your Together Personal Finance Transfer of Equity
Please provide a copy of your National Insurance Number?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
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 provide the name(s) and addresse(s) of anyone to be extracted from the title deeds?
Please provide the details of those who jointly own the property with you?
Is there to be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Caveats to be read in conjunction with the above Together Personal Finance transfer of equity Advice :
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 Together Personal Finance 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 have a license to do so from the freeholder. If such conditions are not strictly observed you may be in violation of the lease. This could potentially result in 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 lawyer will check with Together Personal Finance 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 Together Personal Finance 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 valuation of the property at finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Together Personal Finance your property may be repossessed.
Preparing the Transfer of Equity with a Together Personal Finance 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 Together Personal Finance 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 contained within 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.