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Questions and answers: Topaz Finance transfer of equity

  • What should I be budgeting for when it comes to what legal costs are for a transfer of equity? I need to transfer equity and refinance - moving over to Topaz Finance - and have been quoted £250 including VAT by Topaz Finance's appointed conveyancing solicitor, Is this a reasonable price?
  • My father died early last year leaving a unencumbered property to me and my half brother 50:50. Having continues to reside at the house, there was a provision in the will specifying that the propertycould not be sold for 24 months after her death so he could continue to live there for a while. He now wants to remain in the property beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the usual way to buy my share?
  • I am thinking of mortgaging my flat in Blaenavon does my lawyer have to be on the Topaz Finance Solicitor panel. The conveyancing also involves a transfer of equity.
  • Having been 4 years estranged I have decided to give up my interest in the house to my husband who is re-mortgaging with Topaz Finance. Could this transfer of equity be done inside four weeks?
  • Will I have to pay any fees for a Transfer of Equity where the existing home loan is with Topaz Finance?
  • Do I need legal advice when doing a transfer of equity where the mortgage is to remain with Topaz Finance?
  • My existing home loan is with Topaz Finance. Can I transfer equity to someone under eighteen years old?

Sample of information requested in a conveyancer form relating to Topaz Finance Transfer of Equity

Please provide the name(s) and addresse(s) of anyone who jointly owns the premises with you?

Please provide a copy of your National Insurance Number?

Who will be responsible for the costs of the Transfer of Equity?

Will there be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same

Please give the name(s) and addresse(s) of anyone to be extracted from the title deeds?

Please list all persons who occupy the property, their respective ages and relationships to you.

General Advice to read in supporting the above Topaz 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 Topaz Finance conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such restrictions are not strictly observed you may be in violation of the lease. This could potentially result in 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 Topaz 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 Topaz 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 time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Topaz Finance your property may be repossessed.

Preparing the Transfer of Equity with a Topaz 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 Topaz 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.

Content 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.


Frequently asked questions relating to Topaz Finance transfer of equity