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Chelsea Building Society

Common questions relating to Chelsea Building Society transfer of equity

  • I am looking for a conveyancer to deal with my transfer of equity. Chelsea Building Society have been approached for a remortgage. I thought of asking my mortgage broker. I understand he may get a kickback for recommending a firm, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Is my logic misguided?
  • I am planning on removing a name from a joint mortgage and the Chelsea Building Society need me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Witham lawyer to deal with the transfer of equity? They need to be on the Chelsea Building Society conveyancing panel.
  • Having been 2 a couple of years separated I have made the decision to give up my interest in the house to my husband who is refinancing with Chelsea Building Society. Can a transfer of equity be done within 28 days?
  • Is it possible to transfer the equity held in my property with my Chelsea Building Society mortgage?
  • Is it sensible to cancel the direct debit for my mortgage with Chelsea Building Society once a date for my remortgage and transfer of equity has been agreed?
  • My existing home loan is with Chelsea Building Society. Can I transfer equity to someone less than eighteen years old?
  • How and when do I pay stamp duty due for the transfer of equity in my home in my sole name which is taking place simultaneously with a switching mortgage with Chelsea Building Society?

Information that may be required from your conveyancing solicitor could ask about your Chelsea Building Society Transfer of Equity

Please provide the details of anyone to be extracted from the title deeds?

Has one of the registered proprietors died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.

We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)

Is the transfer of equity subject to a court order? If yes please supply a copy

Has consent been obtained from Chelsea Building Society to the proposed transfer of equity?

Would you like us to prepare Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?

General Advice to read in supporting the above Chelsea 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 Chelsea Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of the lease. This could trigger 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 lawyer will check with Chelsea 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 Chelsea 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 finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Chelsea Building Society your property may be repossessed.

Preparing the Transfer of Equity with a Chelsea 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 Chelsea 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 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.


Frequently asked questions relating to Chelsea Building Society transfer of equity