Questions and answers: Bath Building Society transfer of equity
- My partner and myself have equal shares in a investment property. I am a top rate tax payer. Preferably I would like to do a transfer of equity into her name in order mitigate tax on the letting income. If Bath Building Society are content with this the legal fees are not prohibitive. What are the implications when we dispose of the property? Would my GGT relief be lost.
- Am I best advised stop the direct debit for my mortgage with Bath Building Society once a date for my remortgage and transfer of equity has been agreed?
- I acquired a house with my cousin in 2010 Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name is removed the Bath Building Society mortgage. There is a significant difference between the value the bank hold and what the property would sell for currently. Can you offer any advice?
- Been looking at consumer forums that solicitors are more expensive than conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor where I need to be transferring equity and at the same time switching mortgage with Bath Building Society
- My mother passed away last March leaving a unencumbered house to me and my step brother in equal shared. Having continues to reside at the property, there was a clause in the will saying the premisescould not be sold for 24 months following her passing so he could reside there for a while. He now says he would like to remain in the house beyond the specified period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the traditional way to purchase my half from me?
- I got my Decree Absolute four years ago. I simply never dealt with the change the ownership from the current 'joint' status to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Bath Building Society is willing to transfer the property and loan in my name (affordability checks done). Does she need a solicitor?
- I am planning on removing a name from a joint mortgage and the Bath Building Society need me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Ampthill lawyer to deal with the transfer of equity? They need to be on the Bath Building Society conveyancing panel.
Information that may be required from your conveyancer could ask regarding your Bath Building Society Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
If you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Have you approached Bath Building Society to obtain consent to the Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
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
General Advice to read in supplemental the above Bath Building Society transfer of equity Advice :
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 premises
If your property is 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 conditions are not complied with 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 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.
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 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 conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information contained within 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.