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Chelsea Building Society

Chelsea Building Society transfer of equity example support desk enquires

  • I acquired a house with my cousin six years ago Since then, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Chelsea Building Society mortgage. There is a 30k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
  • Can you tell me how to have someone removed off the deeds to a house if the home loan is with Chelsea Building Society
  • My partner and I co-own a property in Winchelsea . Mortgage is with Chelsea Building Society. I would like to transfer full ownership to him with no payment of money but without using a conveyancing solicitor. Is this likely to be easy to so?
  • What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Chelsea Building Society?
  • I jointly own a apartment in Blaenavon , with a Chelsea Building Society loan with my ex husband. Him and his new partner are going to buy me out. We had consent from Chelsea Building Society to replace my name with hers. The transfer of equity needs to be completed by a lawyer for Chelsea Building Society (supposedly). Can we deal with the Land Registry change?
  • Me and a friend got a joint mortgage with Chelsea Building Society on a property in 2013. I am now thinking of purchasing a flat on my own and my friend would like to buy me out. Once we have agreed a figure where do we go? Would there be any potential issue with Chelsea Building Society with him being solely liable for the total loan as opposed to only part of it?
  • Am I best advised stop my mortgage payments with Chelsea Building Society once a date for my remortgage and transfer of equity has been agreed?

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

Is there to be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what figure

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Is it the case that one of the registered owners passed away? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.

Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

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

Please give the details of anyone to be removed from the title deeds?

Caveats to be read in further to the above Chelsea Building Society transfer of equity information :

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 properties

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such terms are not adhered to 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 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 time of completion 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 conveyancing solicitor 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 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