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Coventry Building Society

Common questions relating to Coventry Building Society transfer of equity

  • In 2012 I bought a apartment without my partner's name on the deeds. My lawyer said it is because she is not in the loan offer with Coventry Building Society. Is it possible for me to add her name on the documents at HMLR?
  • My partner and myself have equal shares in a buy to let. I am a higher rate tax payer. Preferably I would like to complete a transfer of equity into her name in order reduce our tax on rental income. Assuming Coventry Building Society are fine with this the legal fees are inexpensive. 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.
  • I plan to refinance my flat in Heathfield moving from Godiva Mortgages to Coventry Building Society. The flat is currently in joint names but propose for it to be in my sole name when I transfer. My husband is OK with this and is willing to transfer equity but neither of us want to incur conveyancer charges.
  • When it comes to transfer of equity conveyancing involving a remortgage with Coventry Building Society should I be invoiced 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
  • Me and a friend got a joint mortgage with Coventry Building Society on a apartment a couple of years ago. I am now looking to get a apartment on my own and my friend would like to buy me out. Once we have agreed a price what happens next? Would there be any potential problem with Coventry Building Society with him being on the hook for the total loan as opposed to only half of it?
  • My partner and I co-own a flat in Sedgefield . Mortgage is with Coventry Building Society. I want to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Is this likely to be simple?
  • I am in the process of mortgaging my house in Dunnington does my lawyer need to be on the Coventry Building Society Solicitor panel. The conveyancing also involves a transfer of equity.

Questions that your lawyer may ask in relation to your Coventry Building Society Transfer of Equity

Please give the name(s) and addresse(s) of anyone to be removed from the title deeds?

Can you give the details of anyone who jointly owns the premises with you?

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

We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)

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

Have you approached Coventry Building Society to obtain consent to the Transfer of Equity

General Advice to read in further to the above Coventry 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 Coventry Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach of 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 conveyancing solicitor will check with Coventry 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 Coventry 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 finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Coventry Building Society your property may be repossessed.

Preparing the Transfer of Equity with a Coventry 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 Coventry 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 Coventry Building Society transfer of equity