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Are you in need of a Transfer of Equity with a Chelsea Building Society (a trading name of Yorkshire BS) mortgage? Failing to check that a lawyer is on the Chelsea Building Society (a trading name of Yorkshire BS) list of approved solicitors can put your transfer at risk of delay or failure. Only LenderPanel.com provides a subset of authorised conveyancers for over 130 lenders.

Top seven questions relating to Chelsea Building Society transfer of equity

  • Do I need legal advice when doing a transfer of equity where the home loan is to remain with Chelsea Building Society?
  • I got my Decree Absolute in 2010. Foolishly I never got around to change the ownership from the current 'joint' status to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Chelsea Building Society is happy to transfer the full equity in my name (financial checks done). Does my ex need a solicitor?
  • My partner and myself equally own a BTL. I am a top rate tax payer. Ideally I wish to do a transfer of equity to her sole name in order reduce our tax on rental income. If Chelsea Building Society are fine with this the legal fees are inexpensive. What are the implications when we sell? As I would no longer be on the title documents am I giving up my CGT relief.
  • Chelsea Building Society have today agreed I can take over the mortgage on my home. I have applied for a transfer of equity but is this a transfer of ownership of the title deeds on top?
  • My Chelsea Building Society home loan is in joint names with ex, who is agreeable to come off the deeds and let me have the property. Chelsea Building Society will permit the transfer of equity to me solely. Do Chelsea Building Society call my employer to check my salary?
  • I am refinancing my apartment in Littleborough does my lawyer have to be on the Chelsea Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
  • Is there such a thing a transfer of equity stamp duty calculator?

Examples of questions in a conveyancer form relating to Chelsea Building Society Transfer of Equity

Have you approached Chelsea Building Society to seek consent to the Transfer of Equity

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

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

Who will be responsible for the costs of the Transfer of Equity?

Can you provide the details of anyone who jointly owns the property 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?

Important warnings to consider in supplemental the above Chelsea Building Society transfer of equity Questions and Answers :

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 require that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in violation 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 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 the conclusion 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 lawyer 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.

Content on 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