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Cambridge Building Society transfer of equity: q and a’s

  • My current mortgage is with Cambridge Building Society. Can I transfer equity to someone who is not yet eighteen years old?
  • I currently have a joint Cambridge Building Society mortgage with my cousin and am looking into the feasibility of him taking on the whole mortgage and subtracting myself from it, to enable me to buy a place with my fiance. The outstanding mortgage is in the region 300k, and the property value is about 600k. Is this a transfer of equity? Is land tax payable?
  • My wife and myself have 50:50 shares in a investment property. I am a top rate tax payer. Ideally I would like to do a transfer of equity into her name to reduce our tax on the letting income. Assuming Cambridge Building Society are fine with this the legal fees are inexpensive. What are the implications when we sell? As I would no longer be on the deeds would I lose my CGT relief.
  • Will I incur any fees for a Transfer of Equity where the current mortgage is with Cambridge Building Society?
  • I am in the market for a responsive conveyancing lawyer to assist in a transfer of equity and remortgage with Cambridge Building Society. I I am fearful of appointing the wrong one and there's lots of conveyancing solicitors who do transfer of equity conveyancing to pick from...how do I know which is best appoint?
  • Is it possible to apply to request a further advance from Cambridge Building Society as part of a Transfer of Equity?
  • I recently purchased a apartment without my partner's name on the title documents. My conveyancing solicitor claimed it is due to the fact that she is not in the mortgage with Cambridge Building Society. I'm wondering is there any way that I can add her name on the documents at HM Land Registry?

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

Please give the name(s) and addresse(s) of anyone to be removed from the title deeds?

Will there be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what amounts

Please provide the details of anyone to be added to the property title?

Where you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Is the transfer of equity subject to a court order? If yes please supply a copy

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

General Advice to read in supplemental the above Cambridge Building Society transfer of equity information :

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

If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

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 conveyancing solicitor 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 conveyancing.
If you do not keep up the payments on your mortgage with Cambridge Building Society your property may be repossessed.

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 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