Questions and answers: Coventry Building Society transfer of equity
- My partner and I jointly own a property in Winchelsea
. Home loan 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 easy to so?
- When it comes to transfer of equity conveyancing involving refinance 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
- I am mortgaging my flat in Timperley
does my lawyer need to be on the Coventry Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
- Have recently split up with my wife of 18 years. I'm now back with my parents again and she wishes to stay in the apartment and buy me out. What percentage do I get. Is it half of the equity after paying off the Coventry Building Society home loan? I assume proper valuations are required but I would like ensure that I'm getting what I am entitled to
- Been reviewing online blogs that solicitors are more expensive than licensed conveyancers when it comes to transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I need to be transferring equity and at the same time remortgaging with Coventry Building Society
- My brother and I got a joint mortgage with Coventry Building Society on a property about a year ago. I am now looking to get a apartment on my own and my friend would like to buy me out. Assuming we can agree an amount what happens next? Is there likely to be any problem with Coventry Building Society with him being responsible for the total loan as opposed to only part of it?
- What do I do if I am dissatisfied with the lawyer who did my transfer of equity conveyancing?
Sample of information requested in a conveyancer questionnaire relating to Coventry Building Society Transfer of Equity
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
Is there to be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what sums
Please provide a copy of your National Insurance Number?
Please provide the name(s) and addresse(s) of those who jointly own the premises with you?
Would you like us to draw up a Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
Important warnings to consider 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 titles
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 landlord. 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 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 is dependent on the market value of the property at the conclusion 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 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.