Questions and answers: Chesham Building Society transfer of equity
- Do I need legal representation when doing a transfer of equity where the mortgage is to remain with Chesham Building Society?
- My fiance and myself equally own a buy to let. I am a higher rate tax payer. Preferably I would like to do a transfer of equity to her sole name in order reduce our tax on the letting income. Assuming Chesham Building Society are happy with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the title documents would I lose my CGT relief.
- I am looking for a conveyancer to deal with my transfer of equity. Chesham Building Society are dealing with the refinancing. I considered asking my financial adviser. I understand he may receive a kickback for suggesting a firm, but also of benefit will be that he knows the lawyer, has a working relationship with them. Any flaws you see in this way of thinking?
- My former wife are seeking to get a conveyancer lined up for a remortgage with Chesham Building Society. Transfer of Equity conveyancing is also neededI have used the different rating based websites and the results are from all over the country. Is it important to appoint a lawyer local to us?
- Have recently split up with my ex of thirty years. I'm now living with my parents again and she wants to stay in the apartment and pay me off. What portion am I entitled to. Is it half of the equity after discharging the mortgage with Chesham Building Society? I assume proper valuations are required but I would like ensure that I'm getting I am not being walked over
- As things stand I have a joint Chesham Building Society mortgage with my step-brother and am investigating the possibility of him taking on the whole mortgage and removing myself from it, so as to enable me to buy a place with my soon-to-be-wife. The outstanding mortgage is about 250k, and the property value is about 450k. Is this a transfer of equity? Is stamp duty involved?
- What are my options where I am not happy with the conveyancing solicitor who carried out my transfer of equity transaction?
Examples of information requested in a lawyer questionnaire relating to Chesham 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
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 give the details of anyone to be extracted from the title deeds?
Has consent been obtained from Chesham Building Society to the proposed transfer of equity?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Caveats to be read in in addition to 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 titles
If your property is leasehold, the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 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 varies based on the valuation 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 Chesham Building Society.
Preparing the Transfer of Equity with a Chesham 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 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.
Content on 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.