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Top seven questions relating to Topaz Finance transfer of equity

  • I am trying to find a lawyer to undertake my transfer of equity. Topaz Finance are dealing with the refinancing. I considered asking my mortgage broker. I am lead to believe he will likely receive a kickback for recommending a firm, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic correct?
  • Law week I split up with my ex of thirty years. I'm now back with my parents again and she wishes to stay in the apartment and pay me off. What percentage am I entitled to. Is it half of the equity after redeeming the Topaz Finance home loan? I assume proper valuations are necessary but I really need ensure that I'm getting the best deal
  • My partner and myself equally own a investment property. I am a top rate tax payer. Ideally I wish to do a transfer of equity into her name in order reduce our tax on rental income. Assuming Topaz Finance are fine with this the legal fees are inexpensive. However what happens when we sell? Would my GGT relief be lost.
  • Me and a friend got a joint mortgage with Topaz Finance on a apartment about a year ago. I am now thinking of purchasing a property on my own and my friend would like to buy me out. Once we have agreed a figure what are the next steps? Is there likely to be any concerns with Topaz Finance with him being solely liable for the total mortgage as opposed to only part of it?
  • I am selling my share of a apartment in Woodside to my co-owners husband, they are sticking with Topaz Finance being the the existing lender. We are debating as to who should pay the fees for the transfer of equity. Is this usually shared or is one party obliged to cover the charges for?
  • Is it possible to transfer the equity held in my property with my Topaz Finance home loan?
  • My current mortgage is with Topaz Finance. Can I transfer equity to someone less than eighteen years old?

Questions that your lawyer could ask regarding your Topaz Finance Transfer of Equity

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Is it the case that one of the registered proprietors died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.

If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Please give the details of anyone to be added to the property title?

Will there be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what figure

General Advice to read in conjunction with the above Topaz Finance transfer of equity Advice :

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 Topaz Finance conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in breach 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 Topaz 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 Topaz 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 is dependent on the valuation of the property at the time of completion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Topaz Finance.

Preparing the Transfer of Equity with a Topaz 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 Topaz 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.


Frequently asked questions relating to Topaz Finance transfer of equity