Questions and answers: New Street Mortgages transfer of equity

• Is stamp duty payable when it comes to an transfer of equity with a mortgage with New Street Mortgages?
• My New Street Mortgages mortgage is in joint names with ex, he is agreeable to come off the deeds and let me have the property. New Street Mortgages have consented to the transfer of equity to me solely. Do New Street Mortgages contact my boss to verify my salary?
• Me and my partner co-own a flat in Littleborough . Home loan is with New Street Mortgages. I would like to transfer full ownership to him with no exchange of money but without using a conveyancer. Is this likely to be simple?
• I already have a mortgage with New Street Mortgages and am retaining my current mortgaging but seeking to have have the equity transferred to my name alone so my ex will come off the deeds. How long does the whole transfer of equity process take?
• I am considering remortgaging my house in Winchelsea does my lawyer have to be on the New Street Mortgages Conveyancing panel. The conveyancing also involves a transfer of equity.
• New Street Mortgages have just agreed I can take over the home loan on the flat. I had applied for a transfer of equity but is this a transfer of ownership of the house as well?
• Is it possible to apply to borrow more money from New Street Mortgages as part of a Transfer of Equity?

Sample of information requested in a conveyancer questionnaire relating to New Street Mortgages Transfer of Equity

Important warnings to consider in supporting the above New Street Mortgages 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 New Street Mortgages 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 require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation of 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 conveyancing solicitor will check with New Street Mortgages 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 New Street Mortgages 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 time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a New Street Mortgages 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 New Street Mortgages 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.