Frequently asked questions relating to Coventry Building Society transfer of equity
- When it comes to transfer of equity conveyancing involving a remortgage with Coventry Building Society should I be paying 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
- My Coventry Building Society mortgage is in joint names with ex, who has agreed to be removed and put the house in my name alone. Coventry Building Society will permit the transfer of equity to me solely. Do Coventry Building Society write my employer to verify my salary?
- My mother passed away half a year ago leaving a unencumbered house to me and my step brother equally. He has always lived in the house, there was a clause in her will specifying that the housecould not be sold for 24 months following her passing so he could remain there for a prescribed period. He now wishes to remain in the house beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the usual way to purchase my share?
- I currently have a joint Coventry Building Society mortgage with my brother and am looking into the option of him assuming responsibility for the whole mortgage and removing myself from it, to enable me to buy a property with my soon-to-be-wife. The outstanding mortgage is about 250k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty due?
- I own a property in Littleborough
, with a Coventry Building Society mortgage with my former partner. Him and his fiance are going to acquire my share. We had approval from Coventry Building Society to remove my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Coventry Building Society (supposedly). Is it possible for us to deal with the Land Registry change?
- What is the process for having someone removed from the deeds to a house where the mortgage is with Coventry Building Society
- I am transferring my equity in apartment in Hendon to the other co-owners husband, they are reapplying to Coventry Building Society. We are debating as to who must cover the costs of the transfer of equity. Should this be split or is one party obliged to cover the fees for?
Questions that your conveyancer could ask regarding your Coventry Building Society Transfer of Equity
Will there be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what figure
Would you like us to draw up a Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?
Has one of the registered proprietors died? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please give the details of anyone to be extracted from the property title?
Please give the details of anyone who jointly owns the premises with you?
Caveats to be read in in addition to the above Coventry Building Society transfer of equity Questions and Answers :
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 require that you obtain the consent of the landlord. If such conditions are not strictly observed 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 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 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 transaction.
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 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 conveyancer 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.