Recently asked questions relating to Cumberland Building Society transfer of equity

• How and when do I cover the costs of the Stamp Duty Land Tax payable for the transfer of equity in my home in my sole name which is taking place at the same time as a switching mortgage with Cumberland Building Society?
• I am filling out a Cumberland Building Society transfer of equity request and have come to the part regarding debts etc. There are some debts that I have been reducing over a long period, in fact they no longer remain my credit rating. Am I obliged to set these out?
• My divorce is through as is the consent order. Now I need to sort out the transfer of equity at the land registry and the Cumberland Building Society home loan. I have asked Cumberland Building Society for the transfer of equity application. What happens next?
• I got divorced two years ago. Foolishly I never dealt with the transfer ownership from both our names to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Cumberland Building Society is willing to transfer the property and loan in my name (affordability checks done). Does my ex need a solicitor?
• In 2013 I purchased a property without my fiance’s name on the deeds. My conveyancing solicitor claimed it is because she was not in the loan offer with Cumberland Building Society. I'm wondering is there any way that I can add her name on the documents at HMLR?
• I am led to believe we would need at least AP1 and TR1. Is this true?
• My partner and I jointly own a investment property. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity into her name to reduce our tax on the letting income. If 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.

Examples of information requested in a lawyer form relating to 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 titles

If your property is 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 conditions are not complied with you may be in violation of your covenants under the lease. This could trigger 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 varies based on the market value of the property at the conclusion 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 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 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.