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Questions and answers: Cumberland Building Society transfer of equity

  • Me and my partner jointly own a flat in Blaenavon . Home loan is with Cumberland Building Society. I want to transfer full ownership to him with no exchange of money but without using a lawyer. Is this likely to be easy to so?
  • What do I do if I am not happy with the lawyer who conducted my transfer of equity transaction?
  • I got my Decree Absolute in 2011. For some reason I never got around to transfer ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Cumberland Building Society is happy to transfer the property and loan in my name (financial checks done). Does she need any legal representation?
  • I acquired a flat with a friend in 2009 Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name comes off the Cumberland Building Society mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
  • My decree absolute has gone through as is the consent order. Now I need to sort out the transfer of equity at the HMLR and the Cumberland Building Society mortgage. I have contacted Cumberland Building Society for the transfer of equity forms. What are my next steps?
  • Am I best advised stop my mortgage payments with Cumberland Building Society once a date for my remortgage and transfer of equity has been set?
  • I co-own a house in Rye , with a Cumberland Building Society mortgage with my former partner. He and his new partner are going to buy me out. We had the go ahead from Cumberland Building Society to substitute my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Cumberland Building Society (supposedly). In order to save fees can I deal with the Land Registry formalities?

Sample of information requested in a lawyer questionnaire concerning a Cumberland Building Society Transfer of Equity

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

Has one of the registered owners died? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.

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 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)?

Please give the details of those who jointly own the property with you?

Please provide the details of anyone to be removed from the property title?

Important warnings to consider in supplemental the above Cumberland Building Society transfer of equity Questions and Answers :

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 premises

Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in violation of the lease. This could potentially result in 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 varies based on the market value of the property at finalisation 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 provided 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