Sample questions relating to Bath Building Society transfer of equity
- What should I be budgeting for when it comes to what 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 £350 including VAT by Bath Building Society's approved lawyer, Have I been over quoted?
- My partner and myself equally own a investment property. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity to her sole name to reduce our tax on the letting income. Assuming Bath Building Society are happy with this the legal fees are inexpensive. What are the implications when we sell? As I would no longer be on the title documents am I giving up my CGT relief.
- Me and a friend got a joint mortgage with Bath Building Society on a property a couple of years ago. I am now looking to get a apartment 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? Would there be any potential issue with Bath Building Society with him being on the hook for the total mortgage rather than only half of it?
- I am thinking of refinancing my house in Heathfield
does my lawyer need to be on the Bath Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
- Have recently split up with my wife of twenty years. I'm now living with my mum and dad and she wishes to remain in the flat and pay me off. What portion am I entitled to. Is it 50% of the equity after paying off the Bath Building Society home loan? I assume proper valuations are required but I would like ensure that I'm getting I am not being walked over
- I purchased a property with my cousin five.seven years ago Since purchasing the property, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Bath Building Society mortgage. There is a significant difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- My decree absolute has gone through as is the consent order. Now I must sort out the transfer of equity for the property and the Bath Building Society mortgage. I have asked Bath Building Society for the transfer of equity application. What do I do now?
Sample of questions in a lawyer form relating to Bath Building Society Transfer of Equity
Have you approached Bath Building Society to obtain consent to the Transfer of Equity
Please provide a copy of your National Insurance Number?
Please provide the details of anyone to be added to the title deeds?
Please list all persons who occupy the property, their respective ages and relationships to you.
Is the transfer of equity subject to a court order? If yes please supply a copy
Who will be responsible for the costs of the Transfer of Equity?
Important warnings to consider in in addition to the above Bath Building Society transfer of equity information :
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 Bath 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 require that you obtain the consent of the landlord. If such restrictions are not strictly observed you may be in violation of 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 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 conveyancer 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 market value of the property at the time of completion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Bath Building Society.
Preparing the Transfer of Equity with a Bath 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 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.