Common questions relating to Cambridge Building Society transfer of equity
- My mum passed away seven months ago leaving a unencumbered bungalow to me and my half brother 50:50. Having continues to reside at the property, there was a clause in the will specifying that the housecould not be sold for 24 months following her passing so he could reside there for a specified time frame. He now says he would like to remain in the house beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the usual way to purchase my share?
- My existing home loan is with Cambridge Building Society. Can I transfer equity to someone who is not yet eighteen years old?
- As things stand I have a joint Cambridge Building Society mortgage with my step-brother and am investigating the possibility of him taking on the outstanding mortgage and subtracting myself from it, to enable me to buy a property with my partner. The outstanding mortgage is about 250k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax due?
- I got divorced in 2012. For some reason I never got around to change the ownership from the current 'joint' status to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Cambridge Building Society is happy to transfer the full equity in my name (financial checks done). Does my ex need a conveyancer?
- My decree absolute is through as is the consent order. Now I have to address the transfer of equity at the HMLR and the Cambridge Building Society home loan. I have called Cambridge Building Society for the transfer of equity forms. What happens next?
- What do I do if I am unhappy with the lawyer who undertook our transfer of equity conveyancing?
- I am in the process of refinancing my property in Ampthill does my lawyer have to be on the Cambridge Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
Questions that your conveyancing solicitor may ask regarding your Cambridge Building Society Transfer of Equity
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
If you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Can you provide the details of those who jointly own the property with you?
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
General Advice to read in in addition to 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 properties
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in violation of your covenants under the lease. This could potentially result in 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 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 is dependent on the market value 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 lawyer 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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information contained within 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.