Examples of recent questions relating to Topaz Finance transfer of equity

• My partner and myself jointly own a BTL. I am a top rate tax payer. Preferably I wish to do a transfer of equity to her sole name in order reduce our tax on the letting income. If Topaz Finance are happy with this the legal fees are not high. However what happens when we dispose of the property? As I would no longer be on the deeds would I lose my CGT relief.
• My mum died half a year ago leaving a loan-free semi to me and my step brother 50:50. Having continues to reside at the premises, there was a clause in her will saying the premisescould not be sold for 24 months after her death so he could remain there for a prescribed period. He now says he would like to remain in the premises beyond the specified period. We have discussed 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 conventional way to purchase my share?
• At what point do I pay the Stamp Duty Land Tax due for the transfer of equity in my property in my name alone which is taking place at the same time as a remortgage with Topaz Finance?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Topaz Finance?
• My friend and I got a joint mortgage with Topaz Finance on a property in 2013. I am now thinking of purchasing a property on my own and my friend would like to buy me out. On the basis that we can settle on an amount what are the next steps? Is there likely to be any problem with Topaz Finance with him being responsible for the total mortgage rather than only part of it?
• My partner and I co-own a flat in Romsey . Mortgage is with Topaz Finance. I would like to transfer full ownership to him with no passing of money but without using a lawyer. Do you think this should be simple?
• Two years ago I bought a house without my wife's name on the deeds. My lawyer advised it is due to the fact that she was not in the loan offer with Topaz Finance. I'm wondering is there any way that I can add her name on the title?

Sample of questions in a conveyancing solicitor questionnaire concerning a Topaz Finance Transfer of Equity

Information to consider in supporting the above Topaz Finance transfer of equity Info :

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 properties

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach 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 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 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 valuation of the property at finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a Topaz 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 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.

Information contained within 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.