Frequently asked questions relating to Barnsley Building Society transfer of equity
- Will I have to pay any fees for a Transfer of Equity where the current home loan is with Barnsley Building Society?
- I already have a mortgage with Barnsley Building Society and am maintaining my current mortgaging but seeking to have have the equity transferred to my name only so my former wife will no longer be on the mortgage. How long does the whole transfer of equity process take?
- I currently have a joint Barnsley Building Society mortgage with my cousin and am looking into the possibility of him assuming responsibility for the whole mortgage and removing myself from it, to enable me to buy a property with my soon-to-be-wife. The remaining mortgage is in the region 300k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty involved?
- What should I be budgeting for when it comes to what conveyancing fees are for a transfer of equity? I need to transfer equity and refinance - new loan with Barnsley Building Society - and have been quoted Three Hundred pounds excluding VAT by Barnsley Building Society's appointed lawyer, Have I been over quoted?
- My fiance and I equally own a investment property. I am a higher rate tax payer. Ideally I would like to do a transfer of equity to her sole name with a view to mitigate tax on the letting income. If Barnsley Building Society are fine with this the legal fees are not high. What are the implications when we dispose of the property? As I would no longer be on the deeds would I lose my CGT relief.
- My mother passed away half a year ago leaving a unencumbered semi to me and my step brother 50:50. He has always lived in the premises, there was a clause in her will saying the housecould not be sold for 2 years after her passing so he could continue to live there for a prescribed period. He now wishes to remain in the premises 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 usual way to acquire my equity?
- I plan to refinance my apartment in Dunnington
switching from Lloyds TSB to Barnsley Building Society. The flat is currently in joint names but intend for it to be in my name only when I switch. My former partner has agreed to this and is willing to sign a form but neither of us want to incur conveyancer charges.
Examples of information requested in a conveyancer form concerning a Barnsley Building Society Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be removed from the property title?
Where you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Who will be responsible for the costs of the 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 the transfer of equity has been completed?
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Important warnings to consider in supplemental the above Barnsley Building Society 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 Barnsley Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to 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 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 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 conveyancing.
If you do not keep up the payments on your mortgage with Barnsley Building Society your property may be repossessed.
Preparing the Transfer of Equity with a Barnsley Building Society 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 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.
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.
