Frequently asked questions relating to Topaz Finance transfer of equity
- Is stamp duty payable when it comes to an transfer of equity with a mortgage with Topaz Finance?
- Me and my partner co-own a flat in Timperley
. Home loan is with Topaz Finance. I wish to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Is this likely to be straightforward?
- I currently have a joint Topaz Finance mortgage with my brother and am investigating the possibility of him taking on the outstanding mortgage and subtracting myself from it, to enable me to buy a property with my partner. The remaining mortgage is approx 250k, and the property value is approx 500k. Is this a transfer of equity? Is land tax payable?
- I bought a property with my brother six years ago Since then, we have both got married. We are now looking to do a transfer of equity so my name comes off the Topaz Finance mortgage. There is a 30k difference between the value the mortgage company hold and what the property would sell for currently. Can you offer any advice?
- I co-own a house in Winchelsea
, with a Topaz Finance loan with my former partner. Him and his new partner are going to acquire my share. We had consent from Topaz Finance to replace my name with hers. The transfer of equity has to be completed by a lawyer for Topaz Finance (apparently). Can we deal with the Land Registry change?
- I intend to remortgage my maisonette in Timperley
changing from HSBC to Topaz Finance. The home is jointly owned but I would like it to be in my sole name when I switch. My husband is OK with this and is willing to transfer equity but neither of us want to incur conveyancing solicitor charges.
- Online research suggests that solicitors are more expensive than conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I am transferring equity and at the same time switching mortgage with Topaz Finance
Examples of information requested in a conveyancer form concerning a Topaz Finance Transfer of Equity
Has consent been obtained from Topaz Finance to the proposed transfer of equity?
Is it the case that one of the registered owners died? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
Can you give the name(s) and addresse(s) of anyone who jointly owns the property with you?
Please give the details of anyone to be added to the title deeds?
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Please provide the details of anyone to be extracted from the title deeds?
General Advice to read in supplemental 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 premises
If your property is 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 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 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 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 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 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.