Frequently asked questions relating to New Street Mortgages transfer of equity

• My New Street Mortgages mortgage we jointly entered into with ex, he is agreeable to come off the deeds and let me have the property. New Street Mortgages will permit the transfer of equity to me solely. Will New Street Mortgages get in touch with my employer to confirm my salary?
• Given that we have been four years separated I have opted to relinquish up my share of our flat to my husband who is re-mortgaging with New Street Mortgages. Could this transfer of equity be done in one month?
• I already have a mortgage with New Street Mortgages and am maintaining my existing mortgaging but wish to have it in my name alone so my ex won't be on it any longer. How long does the whole transfer of equity process take?
• Law month I separated from my ex of 18 years. I'm now living with my parents again and she wants to stay in the apartment and pay me off. What percentage do I get. Is it half of the equity after discharging the New Street Mortgages home loan? I assume proper valuations are necessary but I would like ensure that I'm getting I am not being taken advantage of
• My former wife are planning to get a conveyancing solicitor lined up for a refinance with New Street Mortgages. Transfer of Equity conveyancing is also necessaryI have used the different rating based websites and the results are from all over UK. Is it important to appoint a conveyancer local to us?
• When it comes to transfer of equity conveyancing involving refinance with New Street Mortgages 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
• Do I need legal representation when doing a transfer of equity where the mortgage is to remain with New Street Mortgages?

Examples of questions in a conveyancer form relating to New Street Mortgages Transfer of Equity

Caveats to be read in conjunction with the above New Street Mortgages transfer of equity Questions and Answers :

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 terms are not adhered to 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 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 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 market value of the property at the conclusion of the transfer of equity conveyancing.

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