Common questions relating to Cumberland Building Society transfer of equity

• Cumberland Building Society have today agreed I can take over the mortgage on the flat. I have applied for a transfer of equity but is this a transfer of ownership of the house on top?
• I already have a mortgage with Cumberland Building Society and am retaining my current mortgaging but applying to have it in my name alone so my former wife will be removed from the title. How long does the whole transfer of equity process take?
• How and when do I incur stamp duty due for the transfer of equity in my property in my name alone which is happening simultaneously with a refinancing via Cumberland Building Society?
• What should I be budgeting for when it comes to what conveyancing fees are for a transfer of equity? I'm in the process of remortgaging - new loan with Cumberland Building Society - and have been quoted Four Hundred pounds plus VAT by Cumberland Building Society's approved conveyancing solicitor, Have I been over quoted?
• I recently purchased a property without my partner's name on the deeds. My conveyancing solicitor said it is because she was not in the mortgage with Cumberland Building Society. I'm wondering is there any way that I can add her name on the documents at HMLR?
• My ex are seeking to get a conveyancing solicitor lined up for a new mortgage with Cumberland Building Society. Transfer of Equity conveyancing is also requiredI have used the different rating based websites and the results are from all over England and Wales. Do we need to have a conveyancing solicitor local to us?
• Can I apply to request more money from Cumberland Building Society as part of a Transfer of Equity?

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

Information to consider 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 require that you obtain the consent of the freeholder. If such conditions are not complied with you may be in breach of 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 conveyancer 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 market value of the property at the conclusion of the transfer of equity conveyancing.

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 provided on 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.