Recently asked questions relating to Topaz Finance transfer of equity

• What do I do if I am not happy with the lawyer who undertook our transfer of equity transaction?
• Me and a friend got a joint mortgage with Topaz Finance on a apartment in 2013. I am now thinking of buying a flat on my own and my friend would like to buy me out. Once we have agreed a figure what happens next? Would there be any potential problem with Topaz Finance with him being on the hook for the total mortgage as opposed to only part of it?
• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Topaz Finance?
• My partner and I have equal shares in a buy to let. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity into her name with a view to reduce our tax on the letting income. If Topaz Finance are content with this the legal fees are not prohibitive. However what happens when we sell? Would my GGT relief be lost.
• I am looking for a lawyer to undertake my transfer of equity. Topaz Finance have been approached for a refinancing. I considered asking my financial adviser. I understand he will likely get a kickback for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Any flaws you see in this way of thinking?
• My decree absolute has gone through as is the consent order. Now I need to deal with the transfer of equity at the land registry and the Topaz Finance mortgage. I have contacted Topaz Finance for the transfer of equity forms. What are my next steps?
• Is it sensible to cancel my mortgage payments with Topaz Finance once a date for my remortgage and transfer of equity has been set?

Sample of information requested in a conveyancer questionnaire concerning a Topaz Finance Transfer of Equity

Information to consider in further to 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

If your property is leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions 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.

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 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 varies based on the valuation of the property at the conclusion 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 lawyer 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.

Content 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.