Recently asked questions relating to Coventry Building Society transfer of equity
- I already have a home loan with Coventry Building Society and am keeping my current mortgaging but applying to have have the equity transferred to my sole name so my former wife won't be on it any longer. How long can it take for the paperwork to be processed?
- Me and a friend got a joint mortgage with Coventry Building Society on a apartment in 2013. I am now looking to get a flat by myself and my friend would like to buy me out. On the basis that we can settle on an amount what happens next? Would there be any potential issue with Coventry Building Society with him being solely liable for the total mortgage as opposed to only part of it?
- What should I be budgeting for when it comes to what legal fees are for a transfer of equity? I'm in the process of remortgaging - moving over to Coventry Building Society - and have been quoted Three Hundred pounds including VAT by Coventry Building Society's appointed conveyancing solicitor, Is this is a good price or not?
- Is it possible to transfer the equity held in my property with my Coventry Building Society home loan?
- My mum passed away last January leaving a loan-free property to me and my half brother 50:50. He has always lived in the premises, there was a clause in her will specifying that the propertycould not be sold for 24 months following her passing so he could remain there for a while. He now wishes to remain in the house beyond the prescribed period. We have considered 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 usual way to purchase my share?
- What can I do where I am not happy with the conveyancing solicitor who carried out my transfer of equity transaction?
- My decree absolute is through as is the consent order. Now I must sort out the transfer of equity at the land registry and the Coventry Building Society home loan. I have called Coventry Building Society for the transfer of equity forms. What happens next?
Sample of information requested in a conveyancing solicitor form concerning a Coventry Building Society Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Will there be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what figure
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Please give the name(s) and addresse(s) of anyone to be added to the property title?
If you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Information to consider in in addition to the above Coventry Building Society transfer of equity information :
Tax and Legal
There are numerous potential 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, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in violation of the lease. This could trigger 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 conveyancer 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 the conclusion 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 lawyer 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 contained within 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.