Barclays plc transfer of equity: q and a’s

• My brother and I got a joint mortgage with Barclays plc on a house about a year ago. I am now thinking of purchasing a apartment by myself and my friend would like to buy me out. Once we have agreed a figure what happens next? Would there be any potential issue with Barclays plc with him being responsible for the total loan rather than only part of it?
• Barclays plc yesterday agreed I can take over the mortgage on my home. I have applied for a transfer of equity but is this a transfer of ownership of the house on top?
• In 2012 I purchased a apartment without my wife's name on the deeds. My conveyancer claimed it is because she was not in the mortgage with Barclays plc. Is it possible for me to add her name on the deeds?
• Our financial adviser has suggested using their conveyancing solicitor for our Transfer of Equity plus remortgage with Barclays plc - Is it not simpler better to just use them?
• How and when do I pay the Stamp Duty Land Tax payable for the transfer of equity in my home in my name alone which is taking place at the same time as a remortgage via Barclays plc?
• Can you tell me how to have someone removed off the title documents to a property where the mortgage is with Barclays plc
• I co-own a property in Wakefield , with a Barclays plc loan with my former partner. Him and his fiance are going to acquire my share. We had approval from Barclays plc to substitute my name with hers. The transfer of equity needs to be completed by a conveyancer for Barclays plc (apparently). Is it possible for us to do the Land Registry formalities?

Questions that your conveyancing solicitor may ask in relation to your Barclays plc Transfer of Equity

General Advice to read in supplemental the above Barclays plc transfer of equity Questions and Answers :

Tax and Legal

There may be various tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Barclays plc conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with 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 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 lawyer will check with Barclays plc 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 Barclays plc 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 time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Barclays plc 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 Barclays plc 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.

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.