Sample questions relating to Newcastle Building Society transfer of equity

• My dad passed away half a year ago leaving a mortgage-free bungalow to me and my step brother in equal shared. Having continues to reside at the premises, there was a provision in the will specifying that the housecould not be sold for 2 years after her death so he could continue to live there for a specified time frame. He now wants to remain in the house beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the usual way to buy my half from me?
• What are the average legal charges are for a transfer of equity? I need to transfer equity and refinance - new loan with Newcastle Building Society - and have been quoted Three Hundred pounds plus VAT by Newcastle Building Society's approved conveyancing solicitor, Have I been over quoted?
• What if my application doesn't meet Newcastle Building Society lending criteria for a transfer of equity?
• Is it sensible to cancel the direct debit for my mortgage with Newcastle Building Society as soon as a date for my remortgage and transfer of equity has been set?
• What legal advice do I need when doing a transfer of equity where the home loan is to remain with Newcastle Building Society?
• My decree absolute is through as is the consent order. Now I have to address the transfer of equity at the land registry and the Newcastle Building Society home loan. I have asked Newcastle Building Society for the transfer of equity forms. What are my next steps?
• What do I do if I am dissatisfied with the conveyancing solicitor who handled my transfer of equity transaction?

Examples of information requested in a conveyancing solicitor form relating to Newcastle Building Society Transfer of Equity

General Advice to read in supporting the above Newcastle Building Society transfer of equity information :

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 Newcastle Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, the lease may have a requirement for notices to be served and 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 trigger 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 conveyancer will check with Newcastle Building Society 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 Newcastle Building Society 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 time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Newcastle Building Society 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 Newcastle Building Society 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 provided 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.