Cumberland Building Society transfer of equity example support desk enquires
- Cumberland Building Society have today agreed I can take over the home loan on my home. I had applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds in addition?
- How much the typical solicitors costs are for a transfer of equity? I need to transfer equity and remortgage - moving over to Cumberland Building Society - and have been quoted £250 plus VAT by Cumberland Building Society's appointed lawyer, Is this is a good price or not?
- I understand we would need at least AP1 and TR1. Is this true?
- I am transferring my share of a house in Woodside to my co-owners husband, they are reapplying to Cumberland Building Society. We are haggling as to who should cover the fees for the transfer of equity. Should this be split or is one party liable for the costs of?
- My existing home loan is with Cumberland Building Society. Can I transfer equity to someone under eighteen years old?
- My dad passed away early last year leaving a mortgage-free semi to me and my step brother equally. Having continues to reside at the property, there was a provision in the will specifying that the housecould not be sold for 2 years after her passing so he could continue to live there for a prescribed period. He now wishes to remain in the house beyond the specified 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 buy my share?
- I am hoping to refinance my flat in Witham
moving from RBS to Cumberland Building Society. The flat is currently in joint names but I would like it to be in my sole name when I switch. My wife is OK with this and is willing to sign a form but neither of us want to incur conveyancing solicitor fees.
Information that may be required from your lawyer could ask about your Cumberland Building Society Transfer of Equity
Can you give the name(s) and addresse(s) of anyone who jointly owns the property with you?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please provide a copy of your National Insurance Number?
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?
Caveats to be read in in addition to the above Cumberland 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 Cumberland Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in violation of your covenants under 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 situations, 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 Cumberland 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 Cumberland 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 time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Cumberland Building Society your property may be repossessed.
Preparing the Transfer of Equity with a Cumberland 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 Cumberland 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.