Recently asked questions relating to Bath Building Society transfer of equity

• What should I be budgeting for when it comes to what conveyancing costs are for a transfer of equity? I need to transfer equity and refinance - moving over to Bath Building Society - and have been quoted £250 plus VAT by Bath Building Society's approved , Have I been over quoted?
• How and when do I cover the costs of stamp duty chargeable for the transfer of equity in my house in my sole name which is taking place at the same time as a remortgage with Bath Building Society?
• I am planning on removing a name from a joint mortgage and the Bath Building Society require me to use a to carry out the legalities. Can you recommend a reasonably priced Wakefield to deal with the transfer of equity? They need to be on the Bath Building Society conveyancing panel.
• My mother passed away early last year leaving a unencumbered house to me and my step brother equally. Having continues to reside at the premises, there was a condition in her will saying the propertycould not be sold for 24 months following her death so he could reside there for a while. He now wishes to remain in the premises beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the usual way to acquire my equity?
• I currently have a joint Bath Building Society mortgage with my step-brother and am investigating the possibility of him taking on the whole mortgage and removing myself from it, to enable me to purchase a place with my fiance. The outstanding mortgage is approx 300k, and the property value is approx 600k. Is this a transfer of equity? Is land tax due?
• Can you tell me how to have a person removed from the title documents to a house if the mortgage is with Bath Building Society
• What if my application doesn't meet Bath Building Society lending criteria for a transfer of equity?

Information that may be required from your conveyancing solicitor may ask about your Bath Building Society Transfer of Equity

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

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 properties

If your property is leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not strictly observed 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 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 lawyer 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 finalisation of the transfer of equity conveyancing.

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.

Information provided 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. Lender Panel.com Ltd will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.