Common questions relating to Cumberland Building Society transfer of equity
- What do I do if I am not happy with the conveyancing solicitor who conducted my transfer of equity conveyancing?
- What if my application doesn't meet Cumberland Building Society lending criteria for a transfer of equity?
- Me and a friend got a joint mortgage with Cumberland Building Society on a apartment about a year ago. I am now looking to get a house on my own and my friend would like to buy me out. Once we have agreed an amount what happens next? Would there be any potential concerns with Cumberland Building Society with him being responsible for the total loan rather than only part of it?
- I am planning on removing a name from a joint mortgage and the Cumberland Building Society require me to use a lawyer to carry out the paperwork. Can you recommend a reasonably priced Littleborough
conveyancer to deal with the transfer of equity? They need to be on the Cumberland Building Society conveyancing panel.
- What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Cumberland Building Society?
- I already have a home loan with Cumberland Building Society and am keeping my current mortgaging but wish to have have the equity transferred to my name only so my former wife won't be on it any longer. How long do Cumberland Building Society take to deal with the application?
- Law month I separated from my wife of 18 years. I'm now back with my parents again and she wishes to stay in the apartment and buy me out. What percentage am I entitled to. Is it 50% of the equity after paying off the mortgage with Cumberland Building Society? I assume proper valuations are required but I would like to be confident that I'm getting I am not being walked over
Information that may be required from your conveyancing solicitor is likely to ask in relation to your Cumberland Building Society Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Who will be responsible for the costs of the Transfer of Equity?
Please provide the name(s) and addresse(s) of those who jointly own the property with you?
Please provide the name(s) and addresse(s) of anyone to be extracted from the title deeds?
Is there to 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 the same
Where you 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?
Important warnings to consider in further to the above Cumberland Building Society transfer of equity Advice :
Tax and Legal
There may be various 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
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such terms are not adhered to 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 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 lawyer 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 conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Cumberland Building Society.
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 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.