Frequently asked questions relating to Cumberland Building Society transfer of equity
- I purchased a house with a friend six years ago Since then, we have both got married. We are now seeking to do a transfer of equity so my name is removed the Cumberland Building Society mortgage. There is a 40k difference between the value the lender say and what the property would sell for currently. Can you offer any advice?
- My mother died early last year leaving a unencumbered semi to me and my brother in equal shared. He has always lived in the property, there was a condition in the will saying the premisescould not be sold for 24 months after her death so he could continue to live there for a while. He now says he would like to remain in the premises beyond the specified period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the usual way to purchase my half from me?
- In 2009 I bought a apartment without my wife's name on the title. My conveyancer said it is due to the fact that she is not in the loan offer with Cumberland Building Society. I'm wondering is there any way that I can add her name on the documents at HMLR?
- My decree absolute is through as is the consent order. Now I have to address the transfer of equity for the property and the Cumberland Building Society home loan. I have called Cumberland Building Society for the transfer of equity forms. What are my next steps?
- I am under the impression we would need at least AP1 and TR1. Is this true?
- I am in the process of removing a name from a joint mortgage and the Cumberland Building Society need me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Sedgefield
lawyer to deal with the transfer of equity? They need to be on the Cumberland Building Society conveyancing panel.
- My existing home loan is with Cumberland Building Society. Can I transfer equity to someone who is not yet 18 years old?
Questions that your lawyer may ask in relation to your Cumberland Building Society Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
Can you give the details of those who jointly own the premises with you?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Please clarify if you are providing any payment for the Transfer of Equity and to whom and disclose any such sums?
Have you approached Cumberland Building Society to obtain consent to the Transfer of Equity
Important warnings to consider in further to the above Cumberland Building Society transfer of equity Advice :
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
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 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 valuation of the property at the time of completion of the transfer of equity transaction.
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 conveyancing solicitor 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.