Top seven questions relating to Chelsea Building Society transfer of equity

• I am planning on 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 Crabtree conveyancing solicitor to deal with the transfer of equity? They need to be on the Chelsea Building Society conveyancing panel.
• Chelsea Building Society yesterday agreed I can take over the mortgage on my home. I had applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds as well?
• How much the typical legal costs are for a transfer of equity? I'm in the process of remortgaging - moving over to Chelsea Building Society - and have been quoted £350 plus VAT by Chelsea Building Society's approved conveyancing solicitor, Is this a reasonable price?
• My Chelsea Building Society home loan is in joint names with ex, who has agreed to be removed and let me have the property. Chelsea Building Society have consented to the transfer of equity to my individual name. Will Chelsea Building Society get in touch with my company to check my salary?
• At what point do I cover the costs of stamp duty due for the transfer of equity in my property in my sole name which is happening at the same time as a switching mortgage via Chelsea Building Society?
• I currently have a joint Chelsea Building Society mortgage with my step-brother and am looking into the possibility of him taking on the whole mortgage and extracting myself from it, so as to enable me to purchase somewhere with my partner. The remaining mortgage is approx 175k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty payable?
• What if my application doesn't meet Chelsea Building Society lending criteria for a transfer of equity?

Sample of questions in a conveyancing solicitor questionnaire relating to Chelsea Building Society Transfer of Equity

Information to consider in further to 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 freeholder. 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.

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 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 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 is dependent on the market value of the property at finalisation of the transfer of equity conveyancing.

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 conveyancer 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.