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Questions and answers: Bath Building Society transfer of equity

  • I am looking for a lawyer to deal with my transfer of equity. Bath Building Society have been approached for a refinancing. I thought of asking my financial adviser. I am lead to believe he will likely get a referral fee for recommending someone, but also of benefit will be that he knows the conveyancer, has dealt with them before. Is my logic flawed?
  • I am thinking of remortgaging my apartment in Miles Platting does my lawyer have to be on the Bath Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
  • Law week I split up with my wife of twenty years. I'm now back with my mum and dad and she wants to stay in the apartment and pay me off. 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 ensure that I'm getting the best deal
  • My friend and I got a joint mortgage with Bath Building Society on a apartment about a year ago. I am now looking to get a flat on my own and my friend would like to buy me out. Once we have agreed a figure what happens next? Is there likely to be any concerns with Bath Building Society with him being solely liable for the total loan rather than only half of it?
  • My Bath Building Society mortgage we jointly entered into with ex, who is agreeable to be removed and put the house in my name alone. Bath Building Society have consented to the transfer of equity to me solely. Do Bath Building Society contact my company to verify my salary?
  • Our financial adviser has recommended their lawyer for the Transfer of Equity plus remortgage with Bath Building Society - won’t it be better to just instruct them?
  • When it comes to transfer of equity conveyancing involving a remortgage with Bath Building Society should I be paying value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee

Examples of information requested in a conveyancer questionnaire concerning a Bath Building Society Transfer of Equity

Has consent been obtained from Bath Building Society to the proposed transfer of equity?

Please give the name(s) and addresse(s) of anyone to be added to the title deeds?

Is there to be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what figure

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Where you 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?

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 Questions and Answers :

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, provisions in the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in breach of 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 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 finalisation 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 provided 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.


Frequently asked questions relating to Bath Building Society transfer of equity