Common questions relating to Barnsley Building Society transfer of equity

• My wife and I have equal shares in a investment property. I am a top rate tax payer. Ideally I wish to complete a transfer of equity to her sole name to mitigate tax on rental income. If Barnsley Building Society are content with this the legal fees are not prohibitive. What are the implications when we sell? As I would no longer be on the deeds am I giving up my CGT relief.
• What if my application doesn't meet Barnsley Building Society lending criteria for a transfer of equity?
• I understand we would need at least AP1 and TR1. Is this true?
• Me and my former husband and I are in the market for an affordable conveyancing solicitor to assist in a transfer of equity and remortgage with Barnsley Building Society. I really don't want to get ripped off and there are many conveyancing practices who do transfer of equity conveyancing to pick from...who do I opt for?
• I acquired a flat with my brother in 2008 Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the Barnsley Building Society mortgage. There is a meaningful difference between the value the mortgage company say and what the property would sell for currently. Can you offer any advice?
• I already have a mortgage with Barnsley Building Society and am keeping my current mortgaging but applying to have have the equity transferred to my sole name so my ex will no longer be on the deeds. How long can it take for the forms to be processed?
• How much the typical conveyancing charges are for a transfer of equity? I need to transfer equity and refinance - new loan with Barnsley Building Society - and have been quoted £250 plus VAT by Barnsley Building Society's appointed conveyancer, Is this a reasonable price?

Examples of information requested in a conveyancing solicitor form concerning a Barnsley Building Society Transfer of Equity

Caveats to be read 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 properties

If your property is leasehold, the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with 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 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 is dependent on the valuation of the property at the conclusion of the transfer of equity transaction.

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 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.