Common questions relating to Topaz Finance transfer of equity

• Online research suggests that solicitors are more expensive than licensed conveyancers when it comes to transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor if I am transferring equity and at the same time remortgaging with Topaz Finance
• I already have a mortgage with Topaz Finance and am keeping my existing mortgaging but applying to have it in my name only so my ex won't be on it any longer. How long does the whole transfer of equity process take?
• Do I need legal advice when doing a transfer of equity where the mortgage is to remain with Topaz Finance?
• Me and a friend got a joint mortgage with Topaz Finance on a apartment about a year ago. I am now thinking of buying a house on my own and my friend would like to buy me out. On the basis that we can settle on a figure what are the next steps? Would there be any potential issue with Topaz Finance with him being solely liable for the total mortgage as opposed to only part of it?
• My mortgage broker has suggested using their conveyancing solicitor for my Transfer of Equity plus remortgage with Topaz Finance - Is it not simpler better to just use them?
• My decree absolute is through as is the consent order. Now I need to sort out the transfer of equity for the property and the Topaz Finance home loan. I have called Topaz Finance for the transfer of equity forms. What happens next?
• I jointly own a property in Blaenavon , with a Topaz Finance loan with my ex husband. He and his fiance are going to acquire my share. We had approval from Topaz Finance to substitute my name with hers. The transfer of equity has to be completed by a lawyer for Topaz Finance (apparently). Is it possible for us to do the Land Registry formalities?

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

Caveats to be read in supporting the above Topaz Finance transfer of equity information :

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

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in violation of your covenants under 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 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 varies based on the market value of the property at the conclusion of the transfer of equity conveyancing.

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 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.