Questions and answers: Cumberland Building Society transfer of equity
- What can I do where I am not happy with the lawyer who undertook my transfer of equity transaction?
- As things stand I have a joint Cumberland Building Society mortgage with my cousin and am looking into the option of him taking on the outstanding mortgage and subtracting myself from it, so as to enable me to buy somewhere with my partner. The outstanding mortgage is approx 175k, and the property value is about 500k. Is this a transfer of equity? Is stamp duty involved?
- My former wife are planning to get a conveyancing solicitor lined up for a new mortgage with Cumberland Building Society. Transfer of Equity conveyancing is also requiredI have used the different comparison based tools and the results are from all over the country. Do we need to appoint a conveyancer local to us?
- I jointly own a house in Crabtree
, with a Cumberland Building Society loan with my former partner. He and his new partner are going to acquire my share. We had consent from Cumberland Building Society to substitute my name with hers. The transfer of equity needs to be done by a lawyer for Cumberland Building Society (supposedly). Can we do the Land Registry change?
- I am refinancing my apartment in Romsey
does my lawyer have to be on the Cumberland Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
- My existing home loan is with Cumberland Building Society. Can I transfer equity to someone less than eighteen years old?
- When it comes to transfer of equity conveyancing involving refinance with Cumberland Building Society should I be charged VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
Information that may be required from your lawyer may ask in relation to your Cumberland Building Society Transfer of Equity
Please let us know if you are providing any payment for the Transfer of Equity and to whom and give details of any such sums?
Has consent been obtained from Cumberland Building Society to the proposed transfer of equity?
Please provide a copy of your National Insurance Number?
Can you give the details of those who jointly own the property with you?
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Information to consider in in addition to the above Cumberland 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 Cumberland Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such terms are not adhered to 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 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 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 is dependent 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 conveyancer 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 lawyer 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 should not be regarded as 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.