Questions and answers: Topaz Finance transfer of equity
- Have recently split up with my wife of thirty years. I'm now living with my parents again and she wants to stay in the apartment and buy me out. What portion am I entitled to. Is it half of the equity after discharging the mortgage with Topaz Finance? I assume proper valuations are required but I would like ensure that I'm getting I am not being walked over
- My divorce is through as is the consent order. Now I need to deal with the transfer of equity at the HMLR and the Topaz Finance home loan. I have contacted Topaz Finance for the transfer of equity forms. What are my next steps?
- What do I do if I am not happy with the conveyancer who did our transfer of equity transaction?
- My father passed away last January leaving a loan-free bungalow to me and my half brother 50:50. He has always lived in the property, there was a provision in her will saying the premisescould not be sold for three years after her passing so he could remain there for a specified time frame. He now wants to remain in the property beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the traditional way to purchase my share?
- My Topaz Finance mortgage is in joint names with ex, who has agreed to come off the deeds and let me have the property. Topaz Finance will permit the transfer of equity to me solely. Will Topaz Finance call my company to verify my salary?
- As things stand I have a joint Topaz Finance mortgage with my step-brother and am investigating the possibility of him taking on the whole mortgage and removing myself from it, to enable me to purchase somewhere with my partner. The remaining mortgage is about 300k, and the property value is approx 500k. Is this a transfer of equity? Is land tax due?
- At what stage do I incur stamp duty chargeable for the transfer of equity in my home in my name alone which is happening at the same time as a remortgage with Topaz Finance?
Sample of questions in a lawyer form relating to Topaz Finance Transfer of Equity
Is there to be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?
Caveats to be read in supporting 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 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 landlord. If such terms are not adhered to you may be in breach of 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 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 conclusion of the transfer of equity transaction.
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 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 lawyer 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.
