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Frequently asked questions relating to Cumberland Building Society transfer of equity

  • Online research suggests that solicitors are more expensive than conveyancers when it comes to transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor if I am transferring equity and at the same time remortgaging with Cumberland Building Society
  • My brother and I got a joint mortgage with Cumberland Building Society on a property in 2013. I am now looking to get a flat on my own and my friend would like to buy me out. Assuming we can agree a price what are the next steps? Is there likely to be any issue with Cumberland Building Society with him being on the hook for the total loan rather than only part of it?
  • My mum died early last year leaving a mortgage-free bungalow to me and my step brother in equal shared. Having continues to reside at the house, there was a condition in the will specifying that the housecould not be sold for three years after her passing so he could continue to live there for a while. He now wants to remain in the premises beyond the prescribed period. We have considered 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 buy my share?
  • Me and my partner jointly own a property in Blaenavon . Mortgage is with Cumberland Building Society. I would like to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Do you think this should be easy to so?
  • After 3 years estranged I have decided to give up my interest in our property to my husband who is refinancing with Cumberland Building Society. Can a transfer of equity be done within one month?
  • I am are looking to find a trustworthy conveyancing lawyer to help me sell in a transfer of equity and refinance with Cumberland Building Society. I want to avoid being ripped off and there are lots of conveyancing practices who do transfer of equity conveyancing to pick from...how do I know which is best appoint?
  • I am transferring my share of a flat in Woodside to the other co-owners husband, they are sticking with Cumberland Building Society being the the existing mortgage company. We are haggling as to who should cover the fees for the transfer of equity. Is this normally split or is one party liable for the costs of?

Examples of questions in a conveyancing solicitor form concerning a Cumberland Building Society Transfer of Equity

Please list all persons who occupy the property, their respective ages and relationships to you.

Is it the case that one of the registered owners died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..

Please provide the name(s) and addresse(s) of anyone who jointly owns the premises with you?

Please inform us where you are making any payment for the Transfer of Equity and to whom and give details of the amount?

Would you like us to draft you Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?

Has consent been obtained from Cumberland Building Society to the proposed transfer of equity?

Important warnings to consider in supporting 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 have a requirement for notices to be served and that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 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 lawyer 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 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.


Frequently asked questions relating to Cumberland Building Society transfer of equity