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?
• What legal advice do I need when doing a transfer of equity where the home loan is to remain with Cambridge Building Society?
• I jointly own a apartment in Heathfield , with a Cambridge Building Society loan with my former partner. He and his fiance are going to acquire my share. We had the go ahead from Cambridge Building Society to substitute my name with hers. The transfer of equity has to be done by a conveyancer for Cambridge Building Society (apparently). In order to save fees can I do the Land Registry change?
• Is it possible to apply to borrow a further advance from Cambridge Building Society as part of a Transfer of Equity?
• Our financial adviser has suggested using their lawyer for our Transfer of Equity plus remortgage with Cambridge Building Society - won’t it be advisable to just use them?
• Having been four years apart I have decided to give up my interest in our property to my husband who is re-mortgaging with Cambridge Building Society. Can a transfer of equity be done in 28 days?
• Me and a friend got a joint mortgage with Cambridge Building Society on a house a couple of years ago. I am now looking to get a flat on my own and my friend would like to buy me out. Assuming we can agree a price what are the next steps? Is there likely to be any concerns with Cambridge Building Society with him being on the hook for the total mortgage as opposed to only half of it?

Questions that your conveyancer is likely to ask regarding your Cambridge Building Society 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.

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.