Recently asked questions relating to Beverley Building Society transfer of equity
- I bought a house with my brother five.seven years ago Since purchasing the property, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Beverley Building Society mortgage. There is a meaningful difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
- I am led to believe we would need at least AP1 and TR1. Is this true?
- My partner and I equally own a buy to let. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity to her sole name with a view to mitigate tax on the letting income. If Beverley 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.
- How and when do I pay the Stamp Duty Land Tax payable for the transfer of equity in my property in my sole name which is happening at the same time as a refinancing 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?
- My Beverley Building Society mortgage is in joint names with ex, who has agreed to come off the mortgage and let me have the property. Beverley Building Society will permit the transfer of equity to my individual name. Do Beverley Building Society get in touch with my employer to verify my salary?
- My decree absolute is through as is the consent order. Now I have to deal with the transfer of equity on title deeds and the Beverley Building Society home loan. I have called Beverley Building Society for the transfer of equity application. What are my next steps?
Sample of information requested in a conveyancing solicitor form concerning a Beverley Building Society Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Please confirm where you are providing any payment for the Transfer of Equity and to whom and specify the amount?
Please provide a copy of your National Insurance Number?
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?
Can you provide the details of those who jointly own the property with you?
General Advice to 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 titles
If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 lawyer 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 the time of completion of the transfer of equity conveyancing.
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 conveyancer 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 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.