Top seven questions relating to Together Personal Finance transfer of equity

• Can you tell me how to have someone removed off the title documents to a house if the mortgage is with Together Personal Finance
• I am filling out a Together Personal Finance transfer of equity application and have arrived at the part concerning debts etc. There are some debts that I have been reducing for a number of years, in fact they no longer remain my credit rating. Am I obliged to reveal these?
• My partner and I have 50:50 shares in a investment property. I am a higher rate tax payer. Ideally I wish to do a transfer of equity to her sole name with a view to mitigate tax on rental income. Assuming Together Personal Finance are happy with this the legal fees are not high. What are the implications when we dispose of the property? Would my GGT relief be lost.
• I am transferring my share of a house in Woodside to the other co-owners fiance, they are sticking with Together Personal Finance being the the existing lender. We are haggling as to who should cover the charges for the transfer of equity. Is this normally split or is one of us liable for the costs of?
• What do I do if I am unhappy with the conveyancer who carried out our transfer of equity conveyancing?
• How and when do I incur stamp duty chargeable for the transfer of equity in my house in my name alone which is happening simultaneously with a refinancing via Together Personal Finance?
• Am I best advised cancel the direct debit for my mortgage with Together Personal Finance once a date for my remortgage and transfer of equity has been set?

Examples of information requested in a lawyer form concerning a Together Personal Finance Transfer of Equity

Caveats to be read in supporting the above Together Personal Finance transfer of equity Advice :

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 titles

If your property is leasehold, the lease may require that you obtain the consent of 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.

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 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 conveyancing solicitor 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 the conclusion of the transfer of equity conveyancing.

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 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.