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Chesham Building Society

Top seven questions relating to Chesham Building Society transfer of equity

  • My current home loan is with Chesham Building Society. Can I transfer equity to someone less than eighteen years old?
  • Will I incur any fees for a Transfer of Equity where the existing home loan is with Chesham Building Society?
  • As things stand I have a joint Chesham Building Society mortgage with my brother and am looking into the option of him taking on the whole mortgage and subtracting myself from it, so as to enable me to purchase a property with my partner. The remaining mortgage is about 250k, and the property value is approx 600k. Is this a transfer of equity? Is land tax due?
  • Have recently separated from my partner of twenty years. I'm now back with my parents again and she wishes to remain in the property and buy me out. What percentage do I get. Is it 50% of the equity after redeeming the Chesham Building Society home loan? I assume proper valuations are required but I really need ensure that I'm getting the best deal
  • My divorce has gone through as is the consent order. Now I have to deal with the transfer of equity on title deeds and the Chesham Building Society home loan. I have contacted Chesham Building Society for the transfer of equity application. What are my next steps?
  • What are my options where I am unhappy with the conveyancing solicitor who did my transfer of equity conveyancing?
  • How much the typical legal costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Chesham Building Society - and have been quoted £350 including VAT by Chesham Building Society's approved conveyancing solicitor, Have I been over quoted?

Sample of information requested in a conveyancing solicitor form relating to Chesham Building Society Transfer of Equity

Please let us know of you wish us to prepare Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?

Can you provide the name(s) and addresse(s) of anyone who jointly owns the premises with you?

Please list all persons who occupy the property, their respective ages and relationships to you.

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

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

Please give the details of anyone to be added to the title deeds?

Important warnings to consider in in addition to the above Chesham Building Society transfer of equity information :

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, provisions in the lease may require that you have a license to do so from the landlord. If such terms are not adhered to you may be in breach 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 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 market value of the property at the conclusion of the transfer of equity transaction.
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 conveyancer 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.


Frequently asked questions relating to Chesham Building Society transfer of equity