Recently asked questions relating to Cambridge Building Society transfer of equity

• I own a house in Romsey , with a Cambridge Building Society mortgage with my ex husband. He and his fiance are going to buy me out. We had consent from Cambridge Building Society to remove my name with hers. The transfer of equity needs to be done by a conveyancer for Cambridge Building Society (supposedly). Can we deal with the Land Registry formalities?
• I am selling my equity in house in Warwick to the other co-owners husband, they are sticking with Cambridge Building Society as the the existing lender. We are in heated discussion as to who must pay the charges for the transfer of equity. Is this usually shared or is one of us liable for the fees for?
• I am planning on 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 Ampthill conveyancing solicitor to deal with the transfer of equity? They need to be on the Cambridge Building Society conveyancing panel.
• I am answering a Cambridge Building Society transfer of equity form and have come to the section regarding defaults etc. I do some debts that I have been paying off over a long period, I understand that they no longer remain my credit rating. Must I disclose these?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Cambridge Building Society?
• As things stand I have a joint Cambridge Building Society mortgage with my brother and am looking into the option of him taking on the whole mortgage and removing myself from it, so as to enable me to purchase somewhere with my soon-to-be-wife. The outstanding mortgage is about 250k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax involved?
• Taking into account that we have been 3 years estranged I have decided to transfer my share of the former home to my husband who is refinancing with Cambridge Building Society. Can a transfer of equity be done within four weeks?

Information that may be required from your lawyer may ask about your Cambridge Building Society Transfer of Equity

Caveats to be read in conjunction with the above Cambridge Building Society transfer of equity Info :

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 have a license to do so from 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.

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 time of completion of the transfer of equity transaction.

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 contained within 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.