Frequently asked questions relating to Cambridge Building Society transfer of equity
- My partner and myself equally own a investment property. I am a top rate tax payer. Preferably I would like to complete a transfer of equity into her name with a view to mitigate tax on rental income. Assuming Cambridge Building Society are content with this the legal fees are inexpensive. However what happens when we sell? Would my GGT relief be lost.
- Is it possible to apply to borrow a further advance from Cambridge Building Society as part of a Transfer of Equity?
- Taking into account that we have been 3 years separated I have opted to transfer my interest in the apartment to my husband who is re-mortgaging with Cambridge Building Society. Could this transfer of equity be done within four weeks?
- My decree absolute has gone through as is the consent order. Now I have to address the transfer of equity on title deeds and the Cambridge Building Society mortgage. I have called Cambridge Building Society for the transfer of equity application. What do I do now?
- I am considering remortgaging my property in Ampthill does my lawyer need to be on the Cambridge Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
- I intend to remortgage my flat in Crabtree
switching from Nationwide to Cambridge Building Society. The maisonette is currently in joint names but I would like it to be in my name only when I switch. My former partner has agreed to this and is happy to transfer equity but neither of us want to get a second conveyancing solicitor involved.
- Law week I split up with my partner of twenty years. I'm now living with my mum and dad and she wishes to stay in the property and buy me out. What portion am I entitled to. Is it half of the equity after redeeming the Cambridge Building Society home loan? I assume proper valuations are required but I really need ensure that I'm getting what I am entitled to
Examples of questions in a lawyer form concerning a Cambridge Building Society Transfer of Equity
If you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Who will be responsible for the costs of the Transfer of Equity?
Is the transfer of equity subject to a court order? If yes please supply a copy
Is it the case that one of the registered proprietors passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please clarify if you are making any payment for the Transfer of Equity and to whom and disclose the amount?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Important warnings to consider in in addition to the above Cambridge Building Society transfer of equity Info :
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 require 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 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 lawyer 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 finalisation of the transfer of equity conveyancing.
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.
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.