Questions and answers: test transfer of equity
- My father died last May leaving a unencumbered bungalow to me and my brother in equal shared. He has always lived in the premises, there was a condition in the will specifying that the housecould not be sold for 24 months following her death so he could remain there for a while. He now wants to remain in the premises beyond the specified 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 usual way to buy my half from me?
- I plan to refinance my maisonette in Rye
changing from Barnsley BS to test. The home is currently in joint names but I would like it to be in my sole name when I switch. My former partner has verbally consented to this and is willing to transfer equity but neither of us want to get a second conveyancing solicitor involved.
- Do I need legal advice when doing a transfer of equity where the home loan is to remain with test?
- I jointly own a house in Wakefield
, with a test mortgage with my ex partner. He and his fiance are going to acquire my share. We had the go ahead from test to remove my name with hers. The transfer of equity needs to be done by a conveyancer for test (supposedly). Is it possible for us to deal with the Land Registry change?
- I am selling my equity in flat in Woodside to the other co-owners fiance, they are sticking with test as the the existing mortgage company. We are haggling as to who should pay the costs of the transfer of equity. Should this be split or is one of us liable for the costs of?
- Have recently split up with my ex of twenty years. I'm now living with my parents again and she wishes to stay in the flat and pay me off. What percentage do I get. Is it 50% of the equity after discharging the mortgage with test? I assume proper valuations are necessary but I really need ensure that I'm getting what I am entitled to
- I got my Decree Absolute two years ago. Foolishly I never dealt with the change the ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. test is willing to transfer the full equity in my name (affordability checks done). Does she need a conveyancer?
Sample of questions in a lawyer form relating to test Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Please provide the details of anyone to be added to the title deeds?
Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
Please list all persons who occupy the property, their respective ages and relationships to you.
Can you provide the details of those who jointly own the premises with you?
Information to consider in conjunction with the above test transfer of equity Questions and Answers :
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 test conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. 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 pursuant to 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 test 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 test 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 conveyancing.
If you do not keep up the payments on your mortgage with test your property may be repossessed.
Preparing the Transfer of Equity with a test 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 test 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.