Sample questions relating to Chelsea Building Society transfer of equity
- My partner and I jointly own a house in Winchelsea
. Mortgage is with Chelsea Building Society. I would like to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Is this likely to be simple?
- I am filling out a Chelsea Building Society transfer of equity form and have arrived at the questions that asks about defaults etc. There are some debts that I have been reducing since 2009, I understand that they no longer remain my credit score. Do I need to set these out?
- Can I transfer the equity held in my property with my Chelsea Building Society home loan?
- I am transferring my share of a apartment in Woodside to the other co-owners fiance, they are reapplying to Chelsea Building Society. We are haggling as to who should pay the fees for the transfer of equity. Is this normally split or is one of us liable for the fees for?
- My wife and myself jointly own a buy to let. I am a top rate tax payer. Ideally I wish to complete a transfer of equity into her name with a view to mitigate tax on the letting income. Assuming Chelsea Building Society are fine with this the legal fees are not prohibitive. What are the implications when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
- Is it possible to apply to request more money from Chelsea Building Society as part of a Transfer of Equity?
- I already have a home loan with Chelsea Building Society and am maintaining my current mortgaging but seeking to have have the equity transferred to my name alone so my former wife will come off the mortgage. How long does the whole transfer of equity process take?
Questions that your conveyancing solicitor could ask regarding your Chelsea Building Society Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Please give the details of anyone who jointly owns the property with you?
Please give the name(s) and addresse(s) of anyone to be extracted from the property title?
Has consent been obtained from Chelsea Building Society to the proposed transfer of equity?
Has one of the registered owners died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Who will be responsible for the costs of the Transfer of Equity?
General Advice to read in conjunction with the above Chelsea Building Society transfer of equity Info :
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, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in violation of the lease. This could potentially result in 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 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 conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Chelsea Building Society.
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.
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.