Sample questions relating to Coventry Building Society transfer of equity
- I am trying to find a lawyer to deal with my transfer of equity. Coventry Building Society are dealing with the remortgage. I considered asking my financial adviser. I am lead to believe he will likely receive a referral fee for suggesting someone, 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?
- I am disposing of my share of a house in Woodside to the other co-owners husband, they are reapplying to Coventry Building Society. We are haggling as to who must cover the charges for the transfer of equity. Should this be shared or is one party liable for the legal bill?
- My Coventry Building Society mortgage is in joint names with ex, who is agreeable to come off the mortgage and put the house in my name alone. Coventry Building Society will permit the transfer of equity to my individual name. Will Coventry Building Society call my company to check my salary?
- At what point do I incur the Stamp Duty Land Tax payable for the transfer of equity in my home in my sole name which is taking place at the same time as a switching mortgage with Coventry Building Society?
- I got divorced four years ago. Foolishly I never dealt with the transfer ownership from the current 'joint' status to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Coventry Building Society is content to transfer the property and loan in my name (financial checks done). Does she need a lawyer?
- I am completing a Coventry Building Society transfer of equity form and have arrived at the section regarding debts etc. I do some debts that I have been discharging since 2007, in fact they have long since disappeared from my credit records. Do I need to set these out?
- I am planning on removing a name from a joint mortgage and the Coventry Building Society need me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Dunnington
conveyancer to deal with the transfer of equity? They need to be on the Coventry Building Society conveyancing panel.
Sample of information requested in a lawyer questionnaire relating to Coventry Building Society Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be extracted from the property title?
Please provide the details of anyone to be added to the title deeds?
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?
Can you give the name(s) and addresse(s) of those who jointly own the property with you?
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Caveats to be read in in addition to the above Coventry 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 Coventry Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not complied with you may be in breach of your covenants under 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 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 lawyer 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 varies based on the valuation of the property at finalisation of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Coventry Building Society.
Preparing the Transfer of Equity with a Coventry 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 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.
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.