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Topaz Finance

Common questions relating to Topaz Finance transfer of equity

  • I am hoping to remortgage my flat in Blaenavon moving from Chelsea BS to Topaz Finance. The maisonette is currently in joint names but wish for it to be in my sole name once I switch. My wife has agreed to this and is willing to transfer equity but neither of us want to get a second conveyancing solicitor involved.
  • What do I need to do when it comes adding or removing names (transfer of equity) to or from my Topaz Finance mortgage account?
  • Will I have to pay any fees for a Transfer of Equity where the existing mortgage is with Topaz Finance?
  • I am planning on removing a name from a joint mortgage and the Topaz Finance require me to use a lawyer to carry out the paperwork. Can you recommend a reasonably priced Blaenavon conveyancer to deal with the transfer of equity? They need to be on the Topaz Finance conveyancing panel.
  • As things stand I have a joint Topaz Finance mortgage with my brother and am investigating the possibility of him assuming responsibility for the outstanding mortgage and removing myself from it, so as to enable me to buy somewhere with my soon-to-be-wife. The outstanding mortgage is in the region 300k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty payable?
  • Taking into account that we have been 4 years separated I have opted to relinquish up my interest in the apartment to my husband who is refinancing with Topaz Finance. Could this transfer of equity be done within one month?
  • My friend and I got a joint mortgage with Topaz Finance on a flat in 2013. I am now looking to get a property by myself and my friend would like to buy me out. Once we have agreed an amount what are the next steps? Would there be any potential concerns with Topaz Finance with him being responsible for the total loan rather than only part of it?

Examples of questions in a conveyancer questionnaire concerning a Topaz Finance Transfer of Equity

We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)

Is it the case that one of the registered owners died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..

Will there be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what amounts

Would you like us to draft you Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?

Where you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

General Advice to read in in addition to the above Topaz Finance transfer of equity information :

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 premises

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such terms are not adhered to you may be in violation 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 as a result of 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 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 varies based on the market value of the property at the conclusion 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 lawyer 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 conveyancer 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.


Frequently asked questions relating to Topaz Finance transfer of equity