Common questions relating to Cumberland Building Society transfer of equity
- My dad died seven months ago leaving a unencumbered property to me and my step brother equally. He has always lived in the premises, there was a condition in the will specifying that the premisescould not be sold for 2 years following her passing so he could remain there for a while. He now wants to remain in the property beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the traditional way to purchase my half from me?
- When it comes to transfer of equity conveyancing involving refinance with Cumberland Building Society should I be charged VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- Is it possible to transfer the equity held in my property with my Cumberland Building Society home loan?
- I am transferring my equity in house in Warwick to the other co-owners fiance, they are reapplying to Cumberland Building Society. We are in heated discussion as to who must pay the costs of the transfer of equity. Is this normally shared or is one of us liable for the fees for?
- I co-own a property in Friern Barnet
, with a Cumberland Building Society loan with my ex husband. He and his fiance 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 completed by a lawyer for Cumberland Building Society (apparently). Is it possible for us to do the Land Registry change?
- I currently have a joint Cumberland Building Society mortgage with my brother and am looking into the possibility of him taking on the whole mortgage and removing myself from it, to enable me to purchase a property with my soon-to-be-wife. The remaining mortgage is in the region 250k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty payable?
- I am hoping to remortgage my apartment in Timperley
moving from Chelsea BS to Cumberland Building Society. The apartment is jointly owned but wish for it to be in my name only as and when I remortgage. My husband is OK with this and is willing to sign a form but neither of us want to incur conveyancing solicitor fees.
Sample of information requested in a lawyer form relating to Cumberland Building Society Transfer of Equity
Have you approached Cumberland Building Society to obtain consent to the Transfer of Equity
Where you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?
Who will be responsible for the costs of the Transfer of Equity?
Please clarify if you are providing any payment for the Transfer of Equity and to whom and notify us any such sums?
Information to consider in further to the above Cumberland Building Society transfer of equity Info :
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, 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 terms are not adhered to you may be in violation of the lease. This could potentially result in 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 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 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 valuation of the property at the time of completion of the transfer of equity transaction.
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 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 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.