Beverley Building Society transfer of equity example support desk enquires
- Law week I split up with my ex of thirty years. I'm now back with my mum and dad and she wants to stay in the property and pay me off. What portion am I entitled to. Is it half of the equity after paying off the mortgage with Beverley Building Society? I assume proper valuations are required but I would like to be confident that I'm getting what I am entitled to
- I currently have a joint Beverley Building Society mortgage with my step-brother and am investigating the option of him assuming responsibility for the outstanding mortgage and subtracting myself from it, to enable me to buy a property with my partner. The outstanding mortgage is in the region 250k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty due?
- I am considering remortgaging my property in Dunnington
does my lawyer have to be on the Beverley Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
- Is stamp duty payable when it comes to an transfer of equity with a mortgage with Beverley Building Society?
- Do I need legal representation when doing a transfer of equity where the home loan is to remain with Beverley Building Society?
- When it comes to transfer of equity conveyancing involving a remortgage with Beverley Building Society should I be charged 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
- My partner and I jointly own a BTL. I am a top rate tax payer. Ideally I wish to do a transfer of equity into her name to mitigate tax on the letting income. If Beverley Building Society are fine with this the legal fees are not prohibitive. However what happens when we sell? As I would no longer be on the title documents would I lose my CGT relief.
Sample of questions in a conveyancer questionnaire relating to Beverley Building Society Transfer of Equity
Has consent been obtained from Beverley Building Society to the proposed 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?
Who will be responsible for the costs of the Transfer of Equity?
Please give the name(s) and addresse(s) of anyone who jointly owns the property with you?
Is it the case that one of the registered proprietors died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Is there to be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Caveats to be read in further to the above Beverley Building Society transfer of equity Questions and Answers :
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 Beverley Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with you may be in breach 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 Beverley 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 Beverley 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 conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Beverley Building Society your property may be repossessed.
Preparing the Transfer of Equity with a Beverley 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 Beverley 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 lawyer 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 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.