Bath Building Society transfer of equity: q and a’s
- My friend and I got a joint mortgage with Bath Building Society on a house in 2013. I am now looking to get a house by myself and my friend would like to buy me out. On the basis that we can settle on an amount where do we go? Is there likely to be any issue with Bath Building Society with him being on the hook for the total mortgage rather than only part of it?
- I am planning on removing a name from a joint mortgage and the Bath Building Society need me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Crabtree
conveyancing solicitor to deal with the transfer of equity? They need to be on the Bath Building Society conveyancing panel.
- Law week I split up with my ex of twenty years. I'm now back with my parents again and she wishes to remain in the flat and buy me out. What percentage am I entitled to. Is it 50% of the equity after paying off the Bath Building Society home loan? I assume proper valuations are necessary but I would like to be confident that I'm getting I am not being taken advantage of
- Bath Building Society have just agreed I can take over the home loan on the house. I previously applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry as well?
- As things stand I have a joint Bath Building Society mortgage with my brother and am investigating the feasibility of him assuming responsibility for the outstanding mortgage and removing myself from it, so as to enable me to buy a place with my fiance. The outstanding mortgage is approx 300k, and the property value is in the region 500k. Is this a transfer of equity? Is stamp duty due?
- My divorce is through as is the consent order. Now I need to address the transfer of equity on title deeds and the Bath Building Society mortgage. I have called Bath Building Society for the transfer of equity application. What happens next?
- What are the average solicitors charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Bath Building Society - and have been quoted £250 plus VAT by Bath Building Society's approved conveyancer, Is this is a good price or not?
Information that may be required from your conveyancer is likely to ask in relation to your Bath Building Society Transfer of Equity
Please provide the details of anyone to be removed from the property title?
If 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.
Please let us know if you are making any payment for the Transfer of Equity and to whom and give details of any such sums?
If 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?
Is it the case that one of the registered proprietors died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Please give the details of anyone to be added to the property title?
Caveats to be read in further to the above Bath Building Society 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 Bath 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 obtain the consent of the freeholder. If such conditions are not strictly observed you may be in breach of your covenants under the lease. This could trigger 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 conveyancing solicitor will check with Bath 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 Bath 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 market value of the property at the conclusion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Bath Building Society your property may be repossessed.
Preparing the Transfer of Equity with a Bath 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 Bath 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 conveyancing solicitor 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 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.