Common questions relating to Together Personal Finance transfer of equity
- I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
- Our mortgage broker has recommended their conveyancer for my Transfer of Equity plus remortgage with Together Personal Finance - won’t it be advisable to just use them?
- I am disposing of my equity in property in Woodside to the other co-owners fiance, they are sticking with Together Personal Finance as the the existing mortgage company. We are haggling as to who should cover the costs of the transfer of equity. Is this normally shared or is one of us obliged to cover the fees for?
- My divorce has gone through as is the consent order. Now I must deal with the transfer of equity at the land registry and the Together Personal Finance home loan. I have asked Together Personal Finance for the transfer of equity forms. What happens next?
- My friend and I got a joint mortgage with Together Personal Finance on a apartment in 2013. I am now thinking of purchasing a apartment on my own and my friend would like to buy me out. Once we have agreed a figure what are the next steps? Is there likely to be any issue with Together Personal Finance with him being responsible for the total mortgage rather than only half of it?
- My partner and myself have equal shares in a BTL. I am a higher rate tax payer. Ideally I wish to do a transfer of equity into her name with a view to reduce our tax on the letting income. If Together Personal Finance are happy with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the deeds would I lose my CGT relief.
- I am filling out a Together Personal Finance transfer of equity form and have come to the section regarding defaults etc. I do some debts that I have been reducing for a number of years, in fact they no longer remain my credit score. Must I disclose these?
Sample of questions in a conveyancing solicitor questionnaire relating to Together Personal Finance Transfer of Equity
Please give the details of anyone to be removed from the title deeds?
Has one of the registered owners passed away? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please provide a copy of your National Insurance Number?
If you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Where you are intent on holding 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 confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Information to consider in conjunction with the above Together Personal Finance transfer of equity Questions and Answers :
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 premises
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. If such terms are not adhered to 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 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 varies based on the valuation of the property at the conclusion of the transfer of equity conveyancing.
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 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 conveyancer 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.