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Cumberland Building Society

Recently asked questions relating to Cumberland Building Society transfer of equity

  • I got my Decree Absolute two years ago. For some reason I never dealt with the change the ownership from both our names to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. Cumberland Building Society is happy to transfer the property and loan in my name (financial checks done). Does my ex need a lawyer?
  • What are my options where I am not happy with the lawyer who conducted my transfer of equity conveyancing?
  • My current mortgage is with Cumberland Building Society. Can I transfer equity to someone under eighteen years old?
  • Me and a friend got a joint mortgage with Cumberland Building Society on a flat a couple of years ago. I am now thinking of buying a house by myself and my friend would like to buy me out. On the basis that we can settle on a figure where do we go? Is there likely to be any issue with Cumberland Building Society with him being solely liable for the total loan as opposed to only half of it?
  • I currently have a joint Cumberland Building Society mortgage with my brother and am investigating the option of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to purchase a property with my soon-to-be-wife. The outstanding mortgage is about 175k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty payable?
  • I am considering refinancing my flat in Sedgefield does my lawyer have to be on the Cumberland Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
  • What is the process for adding or subtracting names (transfer of equity) to or from my Cumberland Building Society mortgage account?

Information that may be required from your conveyancer could ask about your Cumberland Building Society Transfer of Equity

Please provide the name(s) and addresse(s) of anyone to be extracted from the property title?

Who will be responsible for the costs of the Transfer of Equity?

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?

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

Please provide the details of those who jointly own the premises with you?

Caveats to be read in further to 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

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 conditions are not complied with you may be in violation of your covenants under 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 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 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 lawyer 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.

Information contained within 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.


Frequently asked questions relating to Cumberland Building Society transfer of equity