Equity Transfer conveyancing quotes from Solicitors who will transfer your equity

Conveyancing equity transfer from CMS - established 1995

Conveyancing Solicitors fixed fee transfer of equity quotes for buying - selling or remortgaging

Equity Transfer quotations from CMS established 1995

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Transfer of Equity Conveyancing (continued)

Re-mortgaging and Transfers of Equity

Where the property is being re-mortgaged at the same time as the transfer of equity there will be no need to obtain the existing lender�s consent to the transfer. This is because the two documents will be dated simultaneously and the old mortgage will be paid off. The new lender will require all parties named on the deeds to be parties to the new mortgage.

Transfer of property for less than it's market value or where no money is changing hands

Where a property or a share in a property is transferred for free or at a discount it is called a �transaction at an undervalue�. Basically, this means that in the eyes of the world the property is being transferred for less than it is actually worth if it was sold on the open market.

There are many reasons why people transfer property for less than its current market value or for free. These may be personal reasons, such as marriage or family gift, or they may be for commercial reasons, where a property is transferred from one company to another. However, some property owners may seek to transfer property to another person to avoid losing the property as a result of insolvency or debt.

This type of transfer is affected by the insolvency laws. Simply put, if a property is transferred for less than its value, the law deems that this is a gift donated by the owner of the property to the recipient of the share in the property. If the person who transfers the property becomes bankrupt within 3 years of the donation the law can undo the transfer. This enables the law to defeat debtors who seek to protect their property from creditors by transferring it to a third party.

The insolvency laws allow the official receiver to sell the property and to pay the creditors of the insolvent person from the proceeds.

Because of the effect the insolvency law can have on property transfers the lender will insist that the property owner, who is transferring a share in a property for free or for less than it is worth, signs a deed called a Declaration of Solvency. The lender may also require the property owner to take out an insurance policy to protect the mortgage repayments. A solicitor will be able to draw up a Declaration of Solvency and will also be able to arrange insolvency insurance if required to do so. This type of insurance can be expensive and it is the property owner�s responsibility to pay for the premium. However, the premium is generally a one off premium which does not need to be renewed.

Transfers of property at market value

Where a share in property is being transferred for the full market value the solicitor will prepare a transfer deed which will show the price paid for that share.

The lender may ask for evidence that the full market price has been paid. Lenders often require a written valuation from a surveyor or estate agent confirming the current market value of the property.

Stamp duty on transfers of equity

Since December 2003 the Inland Revenue require a Stamp Duty Land Tax form to be completed and signed by the property owner. This form, known as the SDLT, must be signed by the property owner (s) and delivered to Inland Revenue within one month of the date on the transfer deed. There is a fine payable for failure to send an SDLT or for sending it late. The fine may be up to �200.00. The responsibility to complete, sign and submit the form is that of the property owner. The solicitor will usually complete the form, arrange for it to be signed and then submit it to Inland Revenue. Most solicitors charge a small fee for this service.

Stamp duty may be payable on the transfer of a property whether it is sold or gifted. A solicitor will be able to advise you whether stamp duty is payable.

Some equity transfers are exempt from stamp duty, for instance where a property is being transferred as a result of a court order following divorce proceedings.

To check current stamp duty rates visit www.inlandrevenue.gov.uk

FREQUENTLY ASKED QUESTIONS FOLLOWING THE DEATH OF A PROPERTY OWNER

(Please refer to the useful Jargon Buster at the foot of this fact sheet for an explanation of the legal terms used)

1. What happens to a property when the owner dies?

The Transfer of land following death is regulated by the Land Registration Act 2002

When a person dies and they own land that will be inherited by someone else, it is usually necessary to register the change of ownership at the Land Registry. A solicitor will do this for you and if you would like a quote for this please either:

Call us on 0845 060 33 55 or 01638 565 318

Or click on the QUOTE button on this web-site and select the Transfer of Equity option, inserting �0 as the consideration. �

Or e mail us at customerservice@cms-uk.co.uk. and we shall be pleased to answer any queries you may have.

If a solicitor has been employed to deal with Grant of Probate or Letters of Administration it is not necessary to use the same solicitor to transfer the property. It is often much more cost effective and efficient to use a specialist Conveyancer to deal with this aspect of the transfer of property. All CMS solicitors are fully qualified to deal with this type of land transfer.

2. How do I find out whether the Deceased owned any land?

The Deceased will usually have Title Deeds for any land that they owned. If there is no mortgage on the property they may keep the Title Deeds at home or they may be held for safe keeping with a bank or a solicitor.

If you are not sure whether the deceased owned property or land you may check this with the Land Registry. You should be aware that a fee is payable for this service. You will find their contact details in our useful links section below. As Personal Representative of the deceased, you can find out this information by making a search in the Index of Proprietors� Names.

If you feel that you need to carry out this search, particularly if you think that the deceased may have owned a number of properties, you may contact the Land Registry and they will explain the procedure you need to follow. Please be aware that there is a fee to search the Index of Proprietors� Names.

If the land or property is already registered with the Land Registry then the deeds will consist of a Charge Certificate if the property is mortgaged or if there is no mortgage the deeds will consist of a Land Certificate.

If the deceased has owned the property for a long time, and there have been no changes, then the land may not be registered with the Land Registry in which case the title deeds will consist of a collection of deeds and documents usually Conveyances, Legal Charges, Assents etc. and will include the deed which conveyed the property to the deceased.

3. How should the Personal Representatives of the Deceased deal with the estate?

By law, the Land Registry always has to assume that the Personal Representatives of the Deceased are following the wishes of the Deceased and are acting within their powers. The Land Registry are not empowered to investigate whether any transfer of the property is in accordance with a Will.

Depending upon the wishes of the Deceased or their Will the Personal Representatives may:

Become the registered owners in their capacity as Personal Representatives
Transfer the property to any Beneficiary of the Will of the Deceased
Transfer the property to the Executor of the Will of the Deceased as Trustee
Transfer the property to someone else in their capacity as Personal Representatives
Discharge a mortgage if the Deceased was the lender

4. What happens if a joint owner dies?

A. Property held as �Joint Tenants�

When property is owned jointly or by several owners as joint tenants the surviving owner (s) may apply to the Land Registry to register the property in their sole name. There is no fee for this but you will need to send the Land Registry:

A completed form DJP (See the Land Registry web-site for the form)
Evidence of death (the original or official copy of the death certificate, the grant of probate or letters of administration).

B. Property held as �Tenants in Common�

When a property is owned jointly or by several owners as tenants in common their share of the property must be dealt with according to the Will of the Deceased. See 2. above.

5. What happens if the owner of an unregistered property dies?

If the Deceased is the sole owner or last surviving joint owner of the property then the Personal Representatives of the Deceased will deal with the property � see 2. above. The property will be conveyed to the new owner by means of a Deed called an Assent or a Transfer. The new owner of the property will then have to apply to the Land Registry for first registration of the property.

6. Registration of Personal Representatives

Personal Representatives may apply to become the registered owners of a property. This option could be used if the Beneficiary of a Will is a minor and not able to inherit. In this case, the Personal Representatives become the registered owner, but only as Personal Representatives of the Deceased.
Once they are registered as owners of the property, the Personal Representatives can later Transfer or Assent the property to the Beneficiaries of the Deceased.

7. Registering the Beneficiaries of the estate � Assents

The Beneficiaries of the Estate may also become the registered owners. In this case they will need to produce the original or an official copy of the Grant of Probate or Letters of Administration, a Stamp Duty Land Tax Certificate and the appropriate fee. If the Beneficiary is already a joint owner of the estate there is no fee to pay. The Beneficiary can apply directly to the Land Registry but this can be complex and a CMS solicitor will be able to deal with this for you easily and efficiently.

8. Transfer of property to a third party

Following Grant of Probate or Letters of Administration the property may be legally transferred to a third party upon production of the Grant of Probate/Letters of Administration.

9. What forms are used to transfer the property of the Deceased?

Form AS1 will be used to assent, i.e. transfer, the whole of one or more registered titles to the beneficiary or beneficiaries.

If form AS1 is not appropriate then one of the following forms may be used:

Form AS2 � assent of a charge (mortgage) (i.e. where the deceased was a lender);

Form AS3 � assent of part of one or more registered titles;

Form TR1 � transfer of the whole of one or more registered titles;

Form TP1 � transfer of part of one or more registered titles.

10. How do I find out if the land is the land registered?

If you do not know whether the property is registered, you may:

Use the Land Registry�s online Find a property service or
Carry out a search of the index map. You can do this by completing and sending form SIM to the Land Registry office responsible for the property you are dealing with.

If you have appointed a CMS solicitor to deal with the Transfer or Assent of the property they will check with the Land Registry whether the property is registered and if necessary will carry out a search of the Index Map for you.

11. What is the procedure if the land is registered?

If the property is registered, you can:

view or download a copy of the register using the Land Registry�s online Find a property service or
get an up to date Official Copy of the Register. You can do this by sending form OC1 to the Land Registry office responsible for the property you are dealing with.

If you have appointed a CMS solicitor to deal with the Assent for you they will obtain up to date Official Copy Entries to check the register before proceeding with the Assent or Transfer.

There may be entries on the register that you will have to consider before you can complete the transfer of the property. These may include:

Restriction: an entry requiring the consent of someone before a particular dealing with the property can take place. This could be a lender, a local authority charge, a party with matrimonial rights, a party with rights of occupation or in the case of leasehold property a Landlord or Management Company.

Notice/Caution: you may need to apply for their cancellation or removal before you would want to go ahead with the transfer. As above this could relate to a financial, matrimonial or right of occupation charge on the property.

Leasehold land: if your property is leasehold, there is usually a clause in the lease requiring the landlord to give his consent, or at least to be informed.

Mortgaged land: If the property is mortgaged, and you do not intend to repay the mortgage in full, you will need to obtain the consent of the lender if you want to transfer the property. If you are paying off the mortgage, you will need to obtain evidence of the discharge of mortgage.

If you have appointed a CMS solicitor to deal with the Transfer/Assent they will advise you whether there are any Notices/Cautions/Restrictions or Mortgages on the property and advise you how to deal with them.

Please note that this is not a full list of the entries that may appear on the register relating to the property

12. Are there any other matters I need to consider before proceeding with an Assent/Transfer?

There are many other matters which do not concern the legal transfer of the land, but may be very important to you. These may include, for example the taxation implications of the Assent or Transfer of the property and you should seek the advice of your accountant before proceeding.

13. Is Stamp Duty payable on a Transfer/Assent

Normally SDLT evidence is not required and you may sign a self-certificate. However, if the person acquiring the property gives a consideration of �40,000 or more for it, other than where they assume responsibility for a secured debt, a Land Transaction Return certificate in form SDLT5 will be required.

If you are unsure if your transfer requires a Land Transaction Return certificate, your solicitor will advise or you may contact HM Revenue and Customs enquiry line on 0845 603 0135 for advice, or on-line at www.inlandrevenue.gov.uk/so.

14. Where can I get further advice?

� To obtain further assistance or information, you can:

� Access the Land Registry website www.landregistry.gov.uk

� Email Customersupport@landregistry.gsi.gov.uk or

� Telephone Customer Support on 0844 892 1111 or

Your CMS solicitor will be happy to answer any queries you may have

15. Jargon buster:

You will find below an explanation of the various legal terms used:

Assent � this is the deed often used to transfer property by the Personal Representatives of a deceased landowner to legally transfer property to the person entitled to it. An Assent is usually supported by the grant of probate or letters of administration.
Administrator/Administratrix � this is the term used for the Personal Representative of a person who has died without leaving a valid will.
Beneficiaries � this is the term used for the persons named by the Deceased in their Will to inherit property or goods.
Charge Certificate � this is the document produced by the Land Registry to evidence legal ownership of a mortgage property.
Executor/Executrix � this is the term used to describe the Personal Representative of a person who has died and has left a valid will.
Land Certificate � this is the document produced by the Land Registry to evidence legal ownership of an unmortgaged property.
Land Registry � this is the Government office that deals with the registration of all property in England and Wales.
Letters of administration � this is the document that is used when the Deceased has not left a valid Will. This document appoints an Administrator to deal with the Deceased�s estate.
Letters de bonis non administrandis � If the original Administrator has died without leaving a valid Will then this document is needed to appoint a new administrator to deal with the Deceased�s estate.
Official Copy of the Register � this is a document produced by the Land Registry to provide an up to date view of the current property register and will include details of ownership, restrictions on the property and any legal charges or mortgages.
Personal representative � this is the term used to describe either the Executor of a valid Will or the Administrator where there is no valid Will.
Probate � this is the document, issued by the Probate office which legally appoints an Executor.
Title Deeds � Either a bundle of documents consisting of Conveyances, Mortgages, Legal Charges, Assents or a Land or Charge Certificate which prove the ownership of the property.
Transfer � the legal deed used to Transfer ownership of property.
Trustee � a person who is appointed to hold property on in trust on behalf of another person.
Will � this is the Legal Document expressing the wishes of the Deceased in relation to their property.

How do we proceed if we are interested or have any further queries?

Just contact CMS either via our website, email or telephone and our dedicated team will be only too pleased to help should you have any questions or queries.

Remember CMS guarantee to better any other genuine quotation that you may receive