West Bromwich Mortgage Company transfer of equity example support desk enquires
- At what point do I incur the Stamp Duty Land Tax chargeable for the transfer of equity in my house in my sole name which is taking place simultaneously with a remortgage via West Bromwich Mortgage Company?
- Given that we have been 3 years separated I have opted to relinquish up my interest in the house to my husband who is refinancing with West Bromwich Mortgage Company. Can a transfer of equity be completed within one month?
- I am selling my equity in property in Woodside to the other co-owners husband, they are reapplying to West Bromwich Mortgage Company. We are in heated discussion as to who must pay the charges for the transfer of equity. Should this be split or is one party obliged to cover the charges for?
- Can you tell me how to have someone removed off the title documents to a property where the home loan is with West Bromwich Mortgage Company
- My father died seven months ago leaving a unencumbered property to me and my half brother 50:50. He has always lived in the premises, there was a provision in her will specifying that the propertycould not be sold for 24 months after her death so he could continue to live there for a specified time frame. He now wants to remain in the house beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the traditional way to acquire my share?
- My brother and I got a joint mortgage with West Bromwich Mortgage Company on a house about a year ago. I am now thinking of buying a apartment on my own and my friend would like to buy me out. On the basis that we can settle on a price where do we go? Is there likely to be any concerns with West Bromwich Mortgage Company with him being responsible for the total loan rather than only part of it?
- What should I be budgeting for when it comes to what legal charges are for a transfer of equity? I'm in the process of remortgaging - new loan with West Bromwich Mortgage Company - and have been quoted £350 plus VAT by West Bromwich Mortgage Company's appointed lawyer, Have I been over quoted?
Sample of questions in a conveyancing solicitor form concerning a West Bromwich Mortgage Company Transfer of Equity
Please let us know of you wish us to draw up a Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
Who will be responsible for the costs of the Transfer of Equity?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Has one of the registered owners passed away? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please give the name(s) and addresse(s) of anyone to be removed from the property title?
Information to consider in supporting the above West Bromwich Mortgage Company 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 West Bromwich Mortgage Company conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
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 your covenants under the lease. This could potentially result in 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 West Bromwich Mortgage Company 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 West Bromwich Mortgage Company 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 valuation of the property at the conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with West Bromwich Mortgage Company your property may be repossessed.
Preparing the Transfer of Equity with a West Bromwich Mortgage Company 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 West Bromwich Mortgage Company 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 contained within 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.