Frequently asked questions relating to Coventry Building Society transfer of equity
- I am answering a Coventry Building Society transfer of equity application and have arrived at the section regarding defaults etc. There are some debts that I have been discharging for a number of years, in fact they have long since disappeared from my credit rating. Am I obliged to disclose these?
- I currently have a joint Coventry Building Society mortgage with my brother and am investigating the feasibility of him taking on the whole mortgage and subtracting myself from it, so as to enable me to purchase somewhere with my soon-to-be-wife. The remaining mortgage is in the region 300k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty payable?
- My brother and I got a joint mortgage with Coventry Building Society on a house in 2013. 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 figure where do we go? 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?
- Coventry Building Society have just agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but is this a transfer of ownership at the Land Registry on top?
- I bought a house with a friend six years ago Since then, we have both got married. We are now seeking to do a transfer of equity so my name is removed the Coventry Building Society mortgage. There is a meaningful difference between the value the Coventry Building Society hold and what the property would sell for currently. Can you offer any advice?
- I am hoping to remortgage my flat in Witham
switching from RBS to Coventry Building Society. The maisonette is jointly owned but intend for it to be in my sole name as and when I switch. My former partner has verbally consented to this and is happy to sign a form but neither of us want to get a second conveyancer involved.
- My existing home loan is with Coventry Building Society. Can I transfer equity to someone less than 18 years old?
Questions that your lawyer may ask about your Coventry Building Society Transfer of Equity
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
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)?
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Who will be responsible for the costs of the Transfer of Equity?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
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
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 trigger 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 varies based 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 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 conveyancing solicitor 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.