Recently asked questions relating to Topaz Finance transfer of equity
- I currently have a joint Topaz Finance mortgage with my brother and am investigating the feasibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, to enable me to purchase a property with my partner. The remaining mortgage is in the region 200k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax involved?
- My former husband are planning to get a lawyer in place for a new mortgage with Topaz Finance. Transfer of Equity conveyancing is also neededI have used the different rating based websites and the results are from all over the country. How necessary is it to appoint a lawyer local to us?
- My financial adviser has recommended their conveyancer for my Transfer of Equity plus remortgage with Topaz Finance - Is it not simpler advisable to just instruct them?
- I am disposing of my equity in house in Warwick to my co-owners fiance, they are reapplying to Topaz Finance. We are in heated discussion as to who must pay the costs of the transfer of equity. Should this be shared or is one party liable for the costs of?
- Is stamp duty payable when it comes to an transfer of equity with a mortgage with Topaz Finance?
- My father passed away half a year ago leaving a mortgage-free bungalow to me and my step brother 50:50. Having continues to reside at the property, there was a clause in her will saying the premisescould not be sold for 24 months following her passing so he could remain there for a while. He now wishes to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the usual way to purchase my share?
- I am completing a Topaz Finance transfer of equity application and have arrived at the part that asks about debts etc. There are some debts that I have been clearing for a number of years, I understand that they have long since disappeared from my credit rating. Am I obliged to set these out?
Questions that your lawyer is likely to ask regarding your Topaz Finance Transfer of Equity
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
If you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please provide the name(s) and addresse(s) of anyone to be extracted from the property title?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Important warnings to consider in in addition to 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 titles
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in violation of the lease. This could potentially result in 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 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 conveyancing solicitor 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 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.