Chelsea Building Society transfer of equity example support desk enquires
- I own a apartment in Dunnington
, with a Chelsea Building Society mortgage with my ex husband. Him and his fiance are going to buy me out. We had approval from Chelsea Building Society to replace my name with hers. The transfer of equity has to be completed by a lawyer for Chelsea Building Society (supposedly). Can we deal with the Land Registry formalities?
- I am trying to find a conveyancing solicitor to undertake my transfer of equity. Chelsea Building Society are dealing with the refinancing. I thought of asking my financial adviser. I am lead to believe he may get a referral fee for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Any flaws you see in this way of thinking?
- Have recently split up with my partner of 18 years. I'm now back with my parents again and she wants to stay in the flat and buy me out. What portion do I get. Is it half of the equity after redeeming the Chelsea Building Society home loan? I assume proper valuations are necessary but I would like ensure that I'm getting I am not being taken advantage of
- Am I best advised cancel my mortgage payments with Chelsea Building Society as soon as a date for my remortgage and transfer of equity has been agreed?
- When it comes to transfer of equity conveyancing involving a remortgage with Chelsea Building Society should I be paying VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- My divorce has gone through as is the consent order. Now I must deal with the transfer of equity at the HMLR and the Chelsea Building Society home loan. I have called Chelsea Building Society for the transfer of equity application. What are my next steps?
- I already have a home loan with Chelsea Building Society and am retaining my existing mortgaging but wish to have have the equity transferred to my name only so my ex will no longer be on the mortgage. How long do Chelsea Building Society take to deal with the application?
Sample of information requested in a conveyancing solicitor form concerning a Chelsea Building Society Transfer of Equity
Please provide a copy of your National Insurance Number?
Please clarify if you are making any payment for the Transfer of Equity and to whom and give details of the amount?
Can you provide the details of those who jointly own the premises with you?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Would you like us to draft you Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
Please give the details of anyone to be added to the property title?
Important warnings to consider in conjunction with 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 titles
Should the tenure of your property be 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.
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 conveyancer 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 the time of completion 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 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.