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Are you in need of a Transfer of Equity with a Cumberland Building Society mortgage? Failing to check that a lawyer is on the Cumberland Building Society list of approved solicitors can put your transfer at risk of delay or failure. Only LenderPanel.com provides a subset of authorised conveyancers for over 130 lenders.

Questions and answers: Cumberland Building Society transfer of equity

  • I plan to refinance my maisonette in Romsey moving from Godiva Mortgages to Cumberland Building Society. The apartment is jointly owned but intend for it to be in my sole name as and when I transfer. My husband is OK with this and is willing to sign a form but neither of us want to incur lawyer fees.
  • My partner and I jointly own a flat in Ampthill . Home loan is with Cumberland Building Society. I would like to transfer full ownership to him with no passing of money but without using a lawyer. Is this likely to be easy to so?
  • I am considering remortgaging my apartment in Littleborough does my lawyer have to be on the Cumberland Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
  • Am I best advised cancel my mortgage payments with Cumberland Building Society as soon as a date for my remortgage and transfer of equity has been set?
  • My fiance and myself jointly own a investment property. I am a higher rate tax payer. Preferably I would like to complete a transfer of equity into her name in order mitigate tax on rental income. Assuming Cumberland Building Society are happy with this the legal fees are inexpensive. What are the implications when we sell? Would my GGT relief be lost.
  • What can I do where I am dissatisfied with the conveyancing solicitor who did our transfer of equity conveyancing?
  • I am answering a Cumberland Building Society transfer of equity application and have come to the section concerning debts etc. I do some debts that I have been discharging since 2008, in fact they have long since disappeared from my credit score. Must I set these out?

Information that may be required from your conveyancer is likely to ask in relation to your Cumberland Building Society Transfer of Equity

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

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” Questionnaire.

Please provide the details of anyone to be added to the title deeds?

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

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

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

General Advice to read in supplemental the above Cumberland Building Society transfer of equity Advice :

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 premises

If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in breach 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 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 lawyer 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.


Frequently asked questions relating to Cumberland Building Society transfer of equity