Top seven questions relating to Coventry Building Society transfer of equity
- Law week I split up with my wife of thirty years. I'm now back with my mum and dad and she wishes to remain in the flat and buy me out. What portion do I get. Is it 50% of the equity after redeeming the mortgage with Coventry Building Society? I assume proper valuations are necessary but I really need ensure that I'm getting I am not being taken advantage of
- I recently purchased a house without my partner's name on the title documents. My conveyancing solicitor advised it is due to the fact that she is not in the mortgage with Coventry Building Society. I'm wondering is there any way that I can add her name on the deeds?
- My ex are looking to get a conveyancer in place for a remortgage with Coventry Building Society. Transfer of Equity conveyancing is also necessaryI have used the different comparison based websites and the results are from all over England and Wales. How necessary is it to appoint a lawyer local to us?
- Me and my partner co-own a property in Ampthill . Home loan is with Coventry Building Society. I would like to transfer full ownership to him with no exchange of money but without using a conveyancer. Do you think this should be straightforward?
- I bought a flat with a friend in 2009 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 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- As things stand I have a joint Coventry Building Society mortgage with my brother and am looking into the possibility of him taking on the outstanding mortgage and subtracting myself from it, so as to enable me to purchase somewhere with my fiance. The remaining mortgage is in the region 200k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty payable?
- I am answering a Coventry Building Society transfer of equity form and have arrived at the questions regarding defaults etc. There are some debts that I have been paying off since 2009, I understand that they have long since disappeared from my credit rating. Do I need to declare these?
Sample of information requested in a lawyer form relating to Coventry Building Society Transfer of Equity
If you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please let us know of you wish us to draw up a Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
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.
Please provide the details of anyone to be added to the title deeds?
Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?
Caveats to be read in supporting the above Coventry Building Society transfer of equity Questions and Answers :
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 titles
If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not complied with 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 market value 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 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.
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.