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Cambridge Building Society

Sample questions relating to Cambridge Building Society transfer of equity

  • My dad passed away seven months ago leaving a mortgage-free house to me and my brother 50:50. Having continues to reside at the house, there was a condition in her will specifying that the propertycould not be sold for three years following her passing so he could remain there for a specified time frame. He now wants to remain in the house beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the usual way to purchase my half from me?
  • I am trying to find a conveyancer to handle my transfer of equity. Cambridge Building Society have been approached for a refinancing. I considered asking my mortgage broker. I am lead to believe he will likely receive a referral fee for recommending a firm, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Is my logic flawed?
  • I am in the process of removing a name from a joint mortgage and the Cambridge Building Society need me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Timperley conveyancer to deal with the transfer of equity? They need to be on the Cambridge Building Society conveyancing panel.
  • The financial adviser has suggested using their lawyer for the Transfer of Equity plus remortgage with Cambridge Building Society - Surely it’s better to just instruct them?
  • Three years ago I bought a flat without my wife's name on the title. My conveyancing solicitor claimed it is because she is not in the mortgage with Cambridge Building Society. Is it possible for me to put her name on the documents at HMLR?
  • I own a property in Winchelsea , with a Cambridge Building Society mortgage with my former partner. Him and his new partner are going to acquire my share. We had consent from Cambridge Building Society to replace my name with hers. The transfer of equity needs to be completed by a conveyancer for Cambridge Building Society (apparently). Is it possible for us to deal with the Land Registry change?
  • I currently have a joint Cambridge Building Society mortgage with my brother and am looking into the feasibility of him taking on the whole mortgage and removing myself from it, to enable me to purchase a property with my soon-to-be-wife. The outstanding mortgage is approx 250k, and the property value is about 450k. Is this a transfer of equity? Is stamp duty due?

Questions that your conveyancer is likely to ask about your Cambridge Building Society Transfer of Equity

Please list all persons who occupy the property, their respective ages and relationships to you.

Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?

Is it the case that one of the registered owners passed away? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..

Please inform us where you are providing any payment for the Transfer of Equity and to whom and specify any such sums?

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

Please provide the details of anyone to be extracted from the property title?

General Advice to read in supporting the above Cambridge 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 Cambridge Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

Should the tenure of your property be 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 terms are not adhered to you may be in violation of 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 conveyancer will check with Cambridge 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 Cambridge 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.
Your property may be repossessed if you do not keep up repayments on your mortgage with Cambridge Building Society.

Preparing the Transfer of Equity with a Cambridge 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 Cambridge 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 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.


Frequently asked questions relating to Cambridge Building Society transfer of equity