Frequently asked questions relating to Barnsley Building Society transfer of equity
- What is the process for having a person removed off the title documents to a property where the home loan is with Barnsley Building Society
- My Barnsley Building Society mortgage is in joint names with ex, who has agreed to be removed and put the house in my name alone. Barnsley Building Society will permit the transfer of equity to my individual name. Do Barnsley Building Society get in touch with my employer to confirm my salary?
- Barnsley Building Society have just agreed I can take over the home loan on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry as well?
- I am in the process of removing a name from a joint mortgage and the Barnsley Building Society need me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Rye
conveyancer to deal with the transfer of equity? They need to be on the Barnsley Building Society conveyancing panel.
- My dad died seven months ago leaving a mortgage-free bungalow to me and my brother equally. He has always lived in the premises, there was a condition in her will saying the premisescould not be sold for 24 months following her passing so he could continue to live there for a specified time frame. He now wishes to remain in the property beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the traditional way to purchase my share?
- I already have a home loan with Barnsley Building Society and am keeping my existing mortgaging but applying to have it in my sole name so my ex will no longer be on the title. How long do Barnsley Building Society take to deal with the application?
- My wife and I have 50:50 shares in a BTL. I am a top rate tax payer. Preferably I wish to do a transfer of equity to her sole name with a view to reduce our tax on rental income. If Barnsley Building Society are happy with this the legal fees are not prohibitive. However what happens when we sell? As I would no longer be on the deeds would I lose my CGT relief.
Examples of information requested in a conveyancing solicitor questionnaire concerning a Barnsley Building Society Transfer of Equity
Please list all persons who occupy the property, their respective ages and relationships to you.
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.
Has consent been obtained from Barnsley Building Society to the proposed transfer of equity?
Who will be responsible for the costs of the Transfer of Equity?
Please provide the details of anyone to be added to the property title?
Where you 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?
Important warnings to consider in conjunction with the above Barnsley Building Society transfer of equity Advice :
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 Barnsley Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not strictly observed you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to 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 lawyer will check with Barnsley 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 Barnsley 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 varies based on the market value of the property at the time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Barnsley Building Society.
Preparing the Transfer of Equity with a Barnsley 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 Barnsley 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 conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information contained within this webpage is for general information and only applies to England and Wales. It does not constitute 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.