Questions and answers: Cambridge Building Society transfer of equity
- I am considering mortgaging my flat in Blaenavon
does my lawyer need to be on the Cambridge Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
- Having been four years apart I have opted to transfer my interest in the flat to my husband who is re-mortgaging with Cambridge Building Society. Can a transfer of equity be done within 28 days?
- My dad passed away half a year ago leaving a unencumbered property to me and my step brother 50:50. He has always lived in the house, there was a provision in the will saying the premisescould not be sold for 24 months following her passing so he could reside there for a while. He now says he would like to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the traditional way to buy my equity?
- Cambridge Building Society yesterday agreed I can take over the home loan on the house. I previously applied for a transfer of equity but presumably there is a transfer of ownership at HMLR as well?
- My decree absolute is through as is the consent order. Now I have to sort out the transfer of equity at the HMLR and the Cambridge Building Society home loan. I have asked Cambridge Building Society for the transfer of equity forms. What do I do now?
- I understand we would need at least AP1 and TR1. Is this true?
- I own a house in Heathfield
, with a Cambridge Building Society mortgage with my former partner. Him and his new partner are going to buy me out. We had approval from Cambridge Building Society to remove my name with hers. The transfer of equity needs to be done by a conveyancing solicitor for Cambridge Building Society (apparently). Is it possible for us to deal with the Land Registry change?
Questions that your conveyancer may ask about your Cambridge Building Society Transfer of Equity
Please give the details of anyone to be added to the property title?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of 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?
If you are adding someone 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” Form.
Please provide the details of anyone who jointly owns the property with you?
Please give the name(s) and addresse(s) of anyone to be extracted from the property title?
Caveats to be read in supporting the above Cambridge Building Society transfer of equity Info :
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, 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 strictly observed you may be in breach 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 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 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 market value of the property at the conclusion 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 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 conveyancer 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.