Cambridge Building Society transfer of equity example support desk enquires
- Law week I separated from my ex of 18 years. I'm now back with my parents again and she wants to stay in the flat and buy me out. What percentage am I entitled to. Is it half of the equity after redeeming the Cambridge Building Society home loan? I assume proper valuations are necessary but I really need to be confident that I'm getting what I am entitled to
- Will I have to pay any fees for a Transfer of Equity where the current home loan is with Cambridge Building Society?
- I am disposing of my share of a flat in Hendon to my co-owners fiance, they are sticking with Cambridge Building Society being the the existing lender. We are in heated discussion as to who must cover the costs of the transfer of equity. Should this be shared or is one of us liable for the fees for?
- I co-own a property in Blaenavon
, with a Cambridge Building Society mortgage with my ex partner. He and his new partner are going to buy me out. We had consent from Cambridge Building Society to replace my name with hers. The transfer of equity needs to be done by a lawyer for Cambridge Building Society (supposedly). Is it possible for us to do the Land Registry change?
- Is it sensible to stop the direct debit for my mortgage with Cambridge Building Society as soon as a date for my remortgage and transfer of equity has been set?
- How and when do I incur stamp duty due for the transfer of equity in my property in my name alone which is taking place at the same time as a refinancing with Cambridge Building Society?
- The mortgage broker has recommended their conveyancing solicitor for the Transfer of Equity plus remortgage with Cambridge Building Society - Surely it’s better to just instruct them?
Examples of questions in a conveyancing solicitor form relating to Cambridge Building Society Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
Who will be responsible for the costs of the Transfer of Equity?
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 provide the details of anyone to be added to the property title?
Has one of the registered owners passed away? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
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?
Important warnings to consider in in addition to the above Cambridge Building Society transfer of equity Advice :
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 have a requirement for notices to be served and that you obtain the consent of the landlord. If such restrictions are not strictly observed you may be in breach of 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 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 is dependent on the market value of the property at the conclusion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Cambridge Building Society.
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 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.