Chelsea Building Society transfer of equity: q and a’s

• What is the process for adding or removing names (transfer of equity) to or from my Chelsea Building Society mortgage account?
• My mum passed away half a year ago leaving a mortgage-free semi to me and my brother equally. He has always lived in the premises, there was a condition in the will saying the premisescould not be sold for 2 years following her death so he could continue to live there for a specified time frame. He now says he would like to remain in the premises beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the usual way to buy my share?
• My ex-wife and I are are seeking to find an affordable conveyancing lawyer to help me sell in a transfer of equity and remortgage with Chelsea Building Society. I really don't want to get ripped off and there's various conveyancing solicitors who do transfer of equity conveyancing to pick from...how do I know which one is best appoint?
• Having been 5 years separated I have made the decision to relinquish up my interest in our apartment to my husband who is refinancing with Chelsea Building Society. Could this transfer of equity be done in less than one month?
• Me and my partner co-own a property in Littleborough . Mortgage is with Chelsea Building Society. I would like to transfer full ownership to him with no exchange of money but without using a lawyer. Is this likely to be straightforward?
• I recently purchased a flat without my fiance’s name on the ownership paperwork. My conveyancing solicitor claimed it is because she is not in the mortgage with Chelsea Building Society. Is it possible for me to add her name on the title?
• Chelsea Building Society have today agreed I can take over the home loan on my home. I previously applied for a transfer of equity but is this a transfer of ownership of the title deeds as well?

Sample of questions in a conveyancer questionnaire concerning a Chelsea Building Society Transfer of Equity

Caveats to be read in further to 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

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not complied with you may be in breach 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 pursuant to 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 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 is dependent on the market value of the property at the conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Chelsea Building Society Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor 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 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.