Questions and answers: West Bromwich Mortgage Company transfer of equity
- When it comes to transfer of equity conveyancing involving a remortgage with West Bromwich Mortgage Company should I be charged value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- I am am in need of a lawyer to handle my transfer of equity. West Bromwich Mortgage Company have been approached for a refinancing. I considered asking my mortgage broker. I am lead to believe he may get a referral fee for recommending a firm, but also of benefit will be that he knows the lawyer, has a working relationship with them. Any flaws you see in this way of thinking?
- My West Bromwich Mortgage Company home loan we jointly entered into with ex, who is agreeable to come off the mortgage and put the house in my name alone. West Bromwich Mortgage Company will permit the transfer of equity to me solely. Do West Bromwich Mortgage Company get in touch with my employer to check my salary?
- My father passed away half a year ago leaving a loan-free semi to me and my step brother in equal shared. He has always lived in the house, there was a clause in her will saying the housecould not be sold for three years following her death so he could continue to live there for a prescribed period. He now wishes to remain in the house beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the conventional way to purchase my equity?
- I bought a property with a friend six years ago Since then, we have both got married. We are now seeking to do a transfer of equity so my name comes off the West Bromwich Mortgage Company mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- I own a property in Winchelsea
, with a West Bromwich Mortgage Company loan with my ex partner. He and his new partner are going to acquire my share. We had approval from West Bromwich Mortgage Company to remove my name with hers. The transfer of equity needs to be done by a conveyancer for West Bromwich Mortgage Company (apparently). In order to save fees can I do the Land Registry formalities?
- How much the typical conveyancing costs are for a transfer of equity? I'm in the process of remortgaging - moving over to West Bromwich Mortgage Company - and have been quoted Four Hundred pounds including VAT by West Bromwich Mortgage Company's appointed conveyancing solicitor, Have I been over quoted?
Information that may be required from your conveyancing solicitor may ask regarding your West Bromwich Mortgage Company Transfer of Equity
Please provide a copy of your National Insurance Number?
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
Is there to be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Where you are adding someone 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.
General Advice to read in conjunction with the above West Bromwich Mortgage Company 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 West Bromwich Mortgage Company conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
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 landlord. If such conditions are not strictly observed you may be in breach of your covenants under the lease. This could potentially result in 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 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 conveyancer 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 varies based on the market value of the property at the time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with West Bromwich Mortgage Company.
Preparing the Transfer of Equity with a West Bromwich Mortgage Company 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 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 conveyancer 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 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.
