Recently asked questions relating to Cumberland Building Society transfer of equity

• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Cumberland Building Society?
• I am planning on removing a name from a joint mortgage and the Cumberland Building Society require me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Friern Barnet conveyancer to deal with the transfer of equity? They need to be on the Cumberland Building Society conveyancing panel.
• My friend and I got a joint mortgage with Cumberland Building Society on a property a couple of years ago. I am now thinking of buying a property by myself and my friend would like to buy me out. On the basis that we can settle on a price what are the next steps? Would there be any potential problem with Cumberland Building Society with him being responsible for the total loan rather than only half of it?
• My former wife are planning to get a conveyancing solicitor in place for a refinance with Cumberland Building Society. Transfer of Equity conveyancing is also necessaryI have used the different rating based websites and the results are from all over the country. How necessary is it to instruct a conveyancing solicitor local to us?
• What is the process for adding or subtracting names (transfer of equity) to or from my Cumberland Building Society mortgage account?
• My father passed away last January leaving a unencumbered property to me and my half brother equally. Having continues to reside at the premises, there was a provision in the will specifying that the propertycould not be sold for 2 years following her passing so he could continue to live there for a while. He now says he would like to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the traditional way to purchase my share?
• I own a apartment in Timperley , 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 remove my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Cumberland Building Society (apparently). Can we do the Land Registry change?

Questions that your conveyancing solicitor could ask about your Cumberland Building Society Transfer of Equity

Information to consider in conjunction with 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 titles

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. 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 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 is dependent on the valuation of the property at the time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Cumberland Building Society Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor 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.

Information contained within 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.