Coventry Building Society transfer of equity example support desk enquires
- When it comes to transfer of equity conveyancing involving a remortgage with Coventry Building Society should I be paying value added tax 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
- My partner and I jointly own a house in Blaenavon
. Mortgage is with Coventry Building Society. I would like to transfer full ownership to him with no passing of money but without using a conveyancer. Do you think this should be straightforward?
- Am I best advised stop the direct debit for my mortgage with Coventry Building Society as soon as a date for my remortgage and transfer of equity has been agreed?
- My friend and I got a joint mortgage with Coventry Building Society on a apartment about a year ago. I am now looking to get a flat on my own and my friend would like to buy me out. On the basis that we can settle on a price what happens next? Is there likely to be any issue with Coventry Building Society with him being on the hook for the total mortgage rather than only part of it?
- 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 me solely. Will Coventry Building Society contact my company to check my salary?
- My father died early last year leaving a unencumbered bungalow to me and my brother 50:50. Having continues to reside at the premises, there was a clause in her will saying the housecould not be sold for 2 years following her passing so he could reside there for a prescribed period. He now says he would like to remain in the premises beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the traditional way to purchase my share?
- I intend to refinance my apartment in Witham
switching from Accord to Coventry Building Society. The maisonette is jointly owned but propose for it to be in my name only as and when I remortgage. My former partner has agreed to this and is willing to sign a form but neither of us want to incur lawyer fees.
Questions that your conveyancer is likely to ask in relation to your Coventry Building Society Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be removed from the property title?
Has one of the registered proprietors died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Is the transfer of equity subject to a court order? If yes please supply a copy
Have you approached Coventry Building Society to obtain consent to the Transfer of Equity
Please let us know of you wish us to draft you Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Information to consider in in addition 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 premises
Should the tenure of your property be 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 restrictions are not strictly observed you may be in breach of the lease. This could potentially result in 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 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 the conclusion of the transfer of equity conveyancing.
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 conveyancer 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 provided 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.