Frequently asked questions relating to Bath Building Society transfer of equity

• My existing mortgage is with Bath Building Society. Can I transfer equity to someone less than 18 years old?
• I jointly own a flat in Sedgefield , with a Bath Building Society mortgage with my ex husband. He and his fiance are going to acquire my share. We had consent from Bath Building Society to replace my name with hers. The transfer of equity has to be done by a conveyancer for Bath Building Society (apparently). Can we do the Land Registry formalities?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Bath Building Society?
• Can I transfer the equity held in my property with my Bath Building Society home loan?
• Is it sensible to stop the direct debit for my mortgage with Bath Building Society as soon as a date for my remortgage and transfer of equity has been set?
• I currently have a joint Bath Building Society mortgage with my cousin and am looking into the option of him taking on the outstanding mortgage and subtracting myself from it, so as to enable me to purchase somewhere with my soon-to-be-wife. The remaining mortgage is about 250k, and the property value is about 600k. Is this a transfer of equity? Is land tax due?
• My wife and myself jointly own a BTL. 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 rental income. Assuming Bath Building Society are happy with this the legal fees are inexpensive. 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.

Information that may be required from your conveyancing solicitor could ask in relation to your Bath Building Society Transfer of Equity

General Advice to read in further to the above Bath Building Society transfer of equity Info :

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 properties

Should the tenure of your property be 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 landlord. If such terms are not adhered to you may be in violation of your covenants under 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 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 varies based on the valuation of the property at the time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Bath Building Society Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor 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 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.