Top seven questions relating to Cumberland Building Society transfer of equity
- I am considering remortgaging my property in Wakefield
does my lawyer need to be on the Cumberland Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
- Been looking at online blogs that solicitors are more expensive than conveyancers when it comes to transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor where I am transferring equity and simultaneously refinancing with Cumberland Building Society
- Me and my partner jointly own a property in Sedgefield
. Home loan is with Cumberland Building Society. I would like to transfer full ownership to him with no payment of money but without using a conveyancing solicitor. Do you think this should be straightforward?
- My wife and myself have 50:50 shares in a investment property. I am a top rate tax payer. Preferably I would like to do a transfer of equity to her sole name with a view to reduce our tax on rental income. Assuming Cumberland Building Society are happy with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the deeds would I lose my CGT relief.
- Am I best advised stop my mortgage payments with Cumberland Building Society as soon as a date for my remortgage and transfer of equity has been agreed?
- I am completing a Cumberland Building Society transfer of equity form and have come to the questions regarding debts etc. There are some debts that I have been paying off over a long period, I understand that they no longer remain my credit records. Am I obliged to set these out?
- Cumberland Building Society have today agreed I can take over the mortgage on the house. I previously applied for a transfer of equity but presumably there is a transfer of ownership of the house on top?
Sample of questions in a conveyancing solicitor form concerning a Cumberland Building Society Transfer of Equity
Is it the case that one of the registered owners died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Please list all persons who occupy the property, their respective ages and relationships to you.
Please let us know if you are providing any payment for the Transfer of Equity and to whom and specify any such sums?
Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
Is the transfer of equity subject to a court order? If yes please supply a copy
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Information to consider in conjunction with 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 titles
If your property is leasehold, the lease may require that you obtain the consent of the landlord. If such restrictions 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 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 conveyancing solicitor 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 conclusion of the transfer of equity conveyancing.
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 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.