Common questions relating to Together Personal Finance transfer of equity
- Online reading suggests that solicitors are more expensive than conveyancers when it comes to transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I am transferring equity and at the same time switching mortgage with Together Personal Finance
- Law week I split up with my ex of thirty years. I'm now living with my parents again and she wants to remain in the flat and buy me out. What portion do I get. Is it half of the equity after discharging the Together Personal Finance home loan? I assume proper valuations are required but I really need to be confident that I'm getting the best deal
- I own a apartment in Littleborough
, with a Together Personal Finance mortgage with my former husband. He and his new partner are going to acquire my share. We had the go ahead from Together Personal Finance to remove my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Together Personal Finance (supposedly). In order to save fees can I deal with the Land Registry formalities?
- I am considering refinancing my property in Heathfield
does my lawyer need to be on the Together Personal Finance Conveyancing panel. The conveyancing also involves a transfer of equity.
- Together Personal Finance have just agreed I can take over the mortgage on the house. I had applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds in addition?
- Am I best advised stop my mortgage payments with Together Personal Finance once a date for my remortgage and transfer of equity has been set?
- As things stand I have a joint Together Personal Finance mortgage with my step-brother and am looking into the feasibility of him taking on the whole mortgage and removing myself from it, to enable me to buy somewhere 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 involved?
Examples of information requested in a conveyancer questionnaire relating to Together Personal Finance 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?
Can you provide the name(s) and addresse(s) of anyone who jointly owns the property with you?
Where you 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?
Please let us know of you wish us to draft you Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax 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” Questionnaire.
Caveats to be read in conjunction with the above Together Personal Finance 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 Together Personal Finance conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. 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.
Indemnity Insurance
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 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 varies based on the market value of the property at the time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Together Personal Finance.
Preparing the Transfer of Equity with a Together Personal Finance Mortgage
When it comes to preparing the the Land Registry documents your conveyancer 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 provided 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.
