Recently asked questions relating to Chesham Building Society transfer of equity

• What can I do where I am not happy with the lawyer who conducted our transfer of equity conveyancing?
• When it comes to transfer of equity conveyancing involving a remortgage with Chesham Building Society should I be charged 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
• My brother and I got a joint mortgage with Chesham Building Society on a house about a year ago. I am now thinking of purchasing a property by myself and my friend would like to buy me out. Once we have agreed a figure where do we go? Is there likely to be any concerns with Chesham Building Society with him being responsible for the total mortgage rather than only part of it?
• Chesham Building Society have today agreed I can take over the home loan on my home. I had applied for a transfer of equity but is this a transfer of ownership of the house as well?
• What if my application doesn't meet Chesham Building Society lending criteria for a transfer of equity?
• My divorce is through as is the consent order. Now I have to sort out the transfer of equity at the HMLR and the Chesham Building Society home loan. I have contacted Chesham Building Society for the transfer of equity forms. What are my next steps?
• My partner and I equally own a buy to let. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity into her name with a view to reduce our tax on rental income. Assuming Chesham Building Society are fine with this the legal fees are not high. What are the implications when we dispose of the property? As I would no longer be on the deeds am I giving up my CGT relief.

Examples of information requested in a conveyancer form concerning a Chesham Building Society Transfer of Equity

Caveats to be read in supporting the above Chesham 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 Chesham Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is 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 as a result of 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 conveyancer will check with Chesham 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 Chesham 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 valuation of the property at the conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Chesham 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 Chesham 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 provided 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.