Sample questions relating to Keystone Property Finance transfer of equity

• I am selling my equity in flat in Birmingham to my co-owners husband, they are sticking with Keystone Property Finance as the the existing lender. We are haggling as to who should cover the legal bill for the transfer of equity. Is this usually split or is one of us obliged to cover the charges for?
• Do I need legal advice when doing a transfer of equity where the home loan is to remain with Keystone Property Finance?
• My mum died last March leaving a unencumbered semi to me and my half brother 50:50. Having continues to reside at the property, there was a provision in her will saying the propertycould not be sold for three years after her death so he could reside there for a prescribed period. He now says he would like to remain in the house beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the usual way to purchase my share?
• I am hoping to refinance my flat in Timperley changing from Godiva Mortgages to Keystone Property Finance. The flat is jointly owned but wish for it to be in my sole name when I switch. My husband is OK with this and is willing to sign a form but neither of us want to incur conveyancer charges.
• Will I incur any charges for a Transfer of Equity where the current mortgage is with Keystone Property Finance?
• Is there such a thing a transfer of equity stamp duty calculator?
• Three years ago I purchased a flat without my fiance’s name on the title. My conveyancer said it is due to the fact that she was not in the loan offer with Keystone Property Finance. I'm wondering is there any way that I can add her name on the documents at HMLR?

Sample of information requested in a conveyancing solicitor form relating to Keystone Property Finance Transfer of Equity

Information to consider in further to the above Keystone Property Finance transfer of equity Info :

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 Keystone Property Finance 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 have a requirement for notices to be served and that you have a license to do so from 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 as a result of 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 Keystone Property Finance 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 Keystone Property Finance 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 Keystone Property Finance 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 Keystone Property Finance 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.

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.