Recently asked questions relating to Cambridge Building Society transfer of equity
- I intend to refinance my home in Miles Platting
changing from Santander to Cambridge Building Society. The maisonette is currently in joint names but intend for it to be in my name only once I transfer. My husband has verbally consented to this and is happy to transfer equity but neither of us want to incur lawyer fees.
- I already have a home loan with Cambridge Building Society and am maintaining my existing mortgaging but applying to have have the equity transferred to my sole name so my former husband won't be on it any longer. How long does the whole transfer of equity process take?
- My wife and I jointly own a investment property. I am a higher rate tax payer. Ideally I would like to do a transfer of equity into her name with a view to reduce our tax on the letting income. If Cambridge Building Society are content with this the legal fees are not prohibitive. However what happens when we sell? As I would no longer be on the deeds would I lose my CGT relief.
- I am planning on removing a name from a joint mortgage and the Cambridge Building Society require me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Crabtree
conveyancing solicitor to deal with the transfer of equity? They need to be on the Cambridge Building Society conveyancing panel.
- Law month I separated from my wife of thirty years. I'm now living with my mum and dad and she wants to stay in the apartment and buy me out. What portion do I get. Is it 50% of the equity after redeeming the mortgage with Cambridge Building Society? I assume proper valuations are required but I would like to be confident that I'm getting the best deal
- I am under the impression we would need at least AP1 and TR1. Is this true?
- I am answering a Cambridge Building Society transfer of equity form and have come to the questions regarding defaults etc. There are some debts that I have been clearing since 2009, I understand that they no longer remain my credit records. Must I reveal these?
Examples of questions in a lawyer questionnaire concerning a Cambridge Building Society Transfer of Equity
Please give the name(s) and addresse(s) of those who jointly own the property with you?
Please list all persons who occupy the property, their respective ages and relationships to you.
Where you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Is the transfer of equity subject to a court order? If yes please supply a copy
Who will be responsible for the costs of the Transfer of Equity?
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Important warnings to consider in further to 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 properties
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 your covenants under 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 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 lawyer 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.