Sample questions relating to Beverley Building Society transfer of equity
- I am answering a Beverley Building Society transfer of equity request and have arrived at the part that asks about defaults etc. I do some debts that I have been reducing for a number of years, I understand that they have long since disappeared from my credit score. Am I obliged to set these out?
- I acquired a property with a friend in 2010 Since then, we have both got married. We are now intending to do a transfer of equity so my name comes off the Beverley Building Society mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- My mum passed away half a year ago leaving a unencumbered property to me and my step brother 50:50. Having continues to reside at the house, there was a condition in the will saying the premisescould not be sold for three years after her death so he could reside there for a prescribed period. He now wants to remain in the house beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the traditional way to purchase my share?
- I currently have a joint Beverley Building Society mortgage with my step-brother and am investigating the possibility of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to purchase a property with my soon-to-be-wife. The remaining mortgage is approx 300k, and the property value is about 450k. Is this a transfer of equity? Is land tax due?
- I co-own a property in Romsey
, with a Beverley Building Society mortgage with my ex partner. He and his fiance are going to buy me out. We had the go ahead from Beverley Building Society to substitute my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Beverley Building Society (apparently). Can we do the Land Registry change?
- What are my options where I am not happy with the conveyancing solicitor who did my transfer of equity transaction?
- My decree absolute is through as is the consent order. Now I need to deal with the transfer of equity for the property and the Beverley Building Society mortgage. I have called Beverley Building Society for the transfer of equity application. What happens next?
Questions that your lawyer is likely to ask in relation to your Beverley Building Society Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Please provide the name(s) and addresse(s) of anyone who jointly owns the property with you?
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Has consent been obtained from Beverley Building Society to the proposed transfer of equity?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Caveats to be read in supplemental the above Beverley 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 Beverley Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
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 landlord. 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 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 conveyancing solicitor 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 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 Beverley Building Society.
Preparing the Transfer of Equity with a Beverley 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 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 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 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.