Recently asked questions relating to Chelsea Building Society transfer of equity
- After four years separated I have opted to transfer my interest in the property to my husband who is refinancing with Chelsea Building Society. Can a transfer of equity be completed in less than one month?
- Will I incur any fees for a Transfer of Equity where the existing home loan is with Chelsea Building Society?
- I intend to refinance my home in Winchelsea
changing from Halifax to Chelsea Building Society. The home is currently in joint names but propose for it to be in my name only when I transfer. My former partner is OK with this and is willing to sign a form but neither of us want to incur conveyancer fees.
- When it comes to transfer of equity conveyancing involving a remortgage with Chelsea Building Society should I be invoiced 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
- I recently purchased a apartment without my wife's name on the deeds. My conveyancer claimed it is because she is not in the mortgage with Chelsea Building Society. I'm wondering is there any way that I can add her name on the documents at HMLR?
- What should I be budgeting for when it comes to what solicitors charges are for a transfer of equity? I need to transfer equity and remortgage - new loan with Chelsea Building Society - and have been quoted £250 plus VAT by Chelsea Building Society's approved conveyancer, Is this a reasonable price?
- As things stand I have a joint Chelsea Building Society mortgage with my step-brother and am looking into the option of him taking on the whole mortgage and subtracting myself from it, to enable me to buy somewhere with my soon-to-be-wife. The outstanding mortgage is in the region 200k, and the property value is approx 500k. Is this a transfer of equity? Is land tax involved?
Sample of information requested in a conveyancing solicitor form concerning a Chelsea Building Society Transfer of Equity
Is there to be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what sums
Is the transfer of equity subject to a court order? If yes please supply a copy
Can you give the details of those who jointly own the premises with you?
Has one of the registered proprietors died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Where you are going to hold 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 let us know of you wish us to draft you Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
General Advice to read in in addition to the above Chelsea Building Society transfer of equity Questions and Answers :
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 have a license to do so from the landlord. If such restrictions are not strictly observed you may be in violation of your covenants under the lease. This could trigger 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 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 transaction.
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 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.