Questions and answers: Chesham Building Society transfer of equity
- My current home loan is with Chesham Building Society. Can I transfer equity to someone who is not yet eighteen years old?
- My ex are planning to get a conveyancing solicitor lined up for a refinance with Chesham Building Society. Transfer of Equity conveyancing is also requiredI have used the different rating based services and the results are from all over the country. How necessary is it to have a lawyer local to us?
- My dad passed away seven months ago leaving a loan-free bungalow to me and my brother equally. He has always lived in the house, there was a clause in the will saying the propertycould not be sold for three years after her death so he could remain there for a while. He now says he would like to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the usual way to purchase my half from me?
- Law week I separated from my wife of twenty years. I'm now back with my parents again and she wishes to remain in the property and pay me off. What portion am I entitled to. Is it half of the equity after paying off the mortgage with Chesham Building Society? I assume proper valuations are required but I would like ensure that I'm getting the best deal
- My mortgage broker has recommended their lawyer for the Transfer of Equity plus remortgage with Chesham Building Society - Is it not simpler advisable to just use them?
- What is the process for adding or subtracting names (transfer of equity) to or from my Chesham Building Society mortgage account?
- My divorce is through as is the consent order. Now I have to sort out the transfer of equity on title deeds and the Chesham Building Society home loan. I have asked Chesham Building Society for the transfer of equity application. What are my next steps?
Sample of information requested in a conveyancing solicitor form concerning a Chesham Building Society Transfer of Equity
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Please provide the name(s) and addresse(s) of those who jointly own the premises with you?
Is it the case that one of the registered proprietors passed away? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Please give the details of anyone to be removed from the property title?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
If you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Information to consider in conjunction with the above Chesham Building Society transfer of equity Info :
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 Chesham 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 obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of 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 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 time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Chesham Building Society your property may be repossessed.
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.