Chelsea Building Society transfer of equity: q and a’s
- I understand we would need at least AP1 and Transfer Deed. Is this true?
- Me and my partner co-own a property in Crabtree
. Home loan is with Chelsea Building Society. I want to transfer full ownership to him with no payment of money but without using a conveyancer. Is this likely to be simple?
- What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Chelsea Building Society?
- My mum passed away seven months ago leaving a loan-free house to me and my brother equally. Having continues to reside at the property, there was a provision in the will specifying that the premisescould not be sold for 2 years after her death so he could continue to live there for a while. He now wishes to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the usual way to purchase my share?
- I am in the process of removing a name from a joint mortgage and the Chelsea Building Society need me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Dunnington
conveyancer to deal with the transfer of equity? They need to be on the Chelsea Building Society conveyancing panel.
- My friend and I got a joint mortgage with Chelsea Building Society on a house a couple of years ago. I am now thinking of buying a apartment by myself and my friend would like to buy me out. Assuming we can agree an amount what are the next steps? Is there likely to be any problem with Chelsea Building Society with him being responsible for the total mortgage as opposed to only part of it?
- I purchased a flat with my brother in 2008 Since purchasing the property, we have both got married. We are now seeking to do a transfer of equity so my name comes off the Chelsea Building Society mortgage. There is a 40k difference between the value the Chelsea Building Society hold and what the property would sell for currently. Can you offer any advice?
Examples of information requested in a conveyancing solicitor questionnaire concerning a Chelsea Building Society Transfer of Equity
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?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Can you provide the name(s) and addresse(s) of those who jointly own the premises with you?
Has consent been obtained from Chelsea Building Society to the proposed transfer of equity?
Please give the details of anyone to be removed from the title deeds?
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
Information to consider in in addition to the above Chelsea Building Society transfer of equity Advice :
Tax and Legal
There are numerous potential 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 premises
If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions 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 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 market value of the property at finalisation of the transfer of equity transaction.
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 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.