Frequently asked questions relating to Cambridge Building Society transfer of equity
- I am disposing of my equity in house in Birmingham to the other co-owners fiance, they are reapplying to Cambridge Building Society. We are in heated discussion as to who should cover the costs of the transfer of equity. Is this usually shared or is one of us obliged to cover the costs of?
- Taking into account that we have been 4 years separated I have opted to relinquish up my share of the apartment to my husband who is re-mortgaging with Cambridge Building Society. Can a transfer of equity be done in 28 days?
- I got my Decree Absolute in 2012. I simply never got around to transfer ownership from both our names to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Cambridge Building Society is willing to transfer the full equity in my name (financial checks done). Does my ex need a lawyer?
- Me and my partner jointly own a house in Rye
. Home loan is with Cambridge Building Society. I wish to transfer full ownership to him with no passing of money but without using a conveyancer. Is this likely to be simple?
- I own a apartment in Blaenavon
, with a Cambridge Building Society loan with my ex partner. Him and his new partner are going to acquire my share. We had approval from Cambridge Building Society to remove my name with hers. The transfer of equity needs to be done by a lawyer for Cambridge Building Society (apparently). Is it possible for us to deal with the Land Registry formalities?
- 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 paperwork. Can you recommend a reasonably priced Wakefield
conveyancer to deal with the transfer of equity? They need to be on the Cambridge Building Society conveyancing panel.
- I am filling out a Cambridge Building Society transfer of equity request and have arrived at the questions regarding debts etc. There are some debts that I have been reducing since 2009, I understand that they have long since disappeared from my credit rating. Do I need to declare these?
Questions that your conveyancing solicitor is likely to ask in relation to your Cambridge Building Society Transfer of Equity
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
Where you are adding a person 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.
Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?
General Advice to read in supporting the above Cambridge Building Society transfer of equity Advice :
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 Cambridge Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed 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 as a result of 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 finalisation of the transfer of equity transaction.
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 conveyancing solicitor 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.