Adam & Company International transfer of equity: q and a’s
- I already have a mortgage with Adam & Company International and am maintaining my current mortgaging but seeking to have have the equity transferred to my sole name so my former partner will come off the deeds. How long can it take for the paperwork to be processed?
- What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Adam & Company International?
- My wife and I have 50:50 shares in a BTL. I am a top rate tax payer. Ideally I would like to do a transfer of equity to her sole name to reduce our tax on the letting income. If Adam & Company International are happy with this the legal fees are not high. What are the implications when we sell? Would my GGT relief be lost.
- I got my Decree Absolute three years ago. I simply never dealt with the transfer ownership from both our names to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Adam & Company International is happy to transfer the full equity in my name (financial checks done). Does she need any legal representation?
- What is the process for adding or removing names (transfer of equity) to or from my Adam & Company International mortgage account?
- My divorce is through as is the consent order. Now I must address the transfer of equity at the HMLR and the Adam & Company International mortgage. I have asked Adam & Company International for the transfer of equity application. What happens next?
- My former wife are planning to get a conveyancer in place for a refinance with Adam & Company International. Transfer of Equity conveyancing is also neededI have used the different comparison based services and the results are from all over England and Wales. Do we need to instruct a conveyancer local to us?
Information that may be required from your conveyancer may ask in relation to your Adam & Company International Transfer of Equity
Where you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Who will be responsible for the costs of the Transfer of Equity?
Please give the name(s) and addresse(s) of anyone to be removed from the title deeds?
Please let us know of you wish us to prepare Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?
Please give the name(s) and addresse(s) of those who jointly own the property with you?
Important warnings to consider in further to the above Adam & Company International 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 Adam & Company International conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such terms are not adhered to 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 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 Adam & Company International 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 Adam & Company International 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 finalisation of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Adam & Company International.
Preparing the Transfer of Equity with a Adam & Company International 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 Adam & Company International 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 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.
