Frequently asked questions relating to Topaz Finance transfer of equity
- I am in the process of remortgaging my house in Littleborough
does my lawyer have to be on the Topaz Finance Conveyancing panel. The conveyancing also involves a transfer of equity.
- I currently have a joint Topaz Finance mortgage with my step-brother and am looking into the feasibility of him assuming responsibility for the whole mortgage and extracting myself from it, to enable me to purchase somewhere with my soon-to-be-wife. The outstanding mortgage is approx 200k, and the property value is in the region 600k. Is this a transfer of equity? Is stamp duty involved?
- Topaz Finance yesterday agreed I can take over the mortgage on my home. I had applied for a transfer of equity but presumably there is a transfer of ownership at HMLR in addition?
- Me and my partner jointly own a property in Romsey
. Home loan is with Topaz Finance. I want to transfer full ownership to him with no passing of money but without using a lawyer. Do you think this should be simple?
- When it comes to transfer of equity conveyancing involving refinance with Topaz Finance should I be charged VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- I am completing a Topaz Finance transfer of equity form and have come to the questions that asks about debts etc. I do some debts that I have been discharging over a long period, I understand that they have long since disappeared from my credit records. Must I set these out?
- I acquired a house with my cousin six years ago Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the Topaz Finance mortgage. There is a significant difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
Sample of questions in a conveyancing solicitor form relating to Topaz Finance Transfer of Equity
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Who will be responsible for the costs of the Transfer of Equity?
Is there to 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
Has one of the registered owners passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Have you approached Topaz Finance to obtain consent to the Transfer of Equity
Please give the details of those who jointly own the property with you?
Important warnings to consider in supplemental the above Topaz 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 Topaz 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 have a license to do so from the freeholder. If such conditions are not complied with you may be in breach of your covenants under the lease. This could trigger 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 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 conveyancer 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 is dependent on the market value 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 conveyancer 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.