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Darlington Building Society

Examples of recent questions relating to Darlington Building Society transfer of equity

  • I am under the impression we would need at least AP1 and TR1. Is this true?
  • How much the typical legal charges are for a transfer of equity? I need to transfer equity and remortgage - moving over to Darlington Building Society - and have been quoted £350 including VAT by Darlington Building Society's appointed conveyancing solicitor, Is this a reasonable price?
  • Darlington Building Society have just agreed I can take over the mortgage on the flat. I previously applied for a transfer of equity but presumably there is a transfer of ownership at HMLR as well?
  • My financial adviser has recommended their lawyer for the Transfer of Equity plus remortgage with Darlington Building Society - Surely it’s better to just instruct them?
  • Am I best advised stop the direct debit for my mortgage with Darlington Building Society once a date for my remortgage and transfer of equity has been agreed?
  • Have recently split up with my partner of twenty years. I'm now living with my mum and dad and she wants to stay in the property and pay me off. What portion am I entitled to. Is it 50% of the equity after redeeming the Darlington Building Society home loan? I assume proper valuations are required but I really need ensure that I'm getting I am not being taken advantage of
  • I jointly own a apartment in Crabtree , with a Darlington Building Society loan with my ex husband. Him and his fiance are going to buy me out. We had consent from Darlington Building Society to substitute my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Darlington Building Society (supposedly). Is it possible for us to deal with the Land Registry change?

Examples of questions in a conveyancer form relating to Darlington Building Society Transfer of Equity

Has consent been obtained from Darlington Building Society to the proposed transfer of equity?

Is there to be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same

If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Please give the details of anyone to be removed from the property title?

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

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Information to consider in supplemental the above Darlington 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 Darlington 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 require that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in breach 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 pursuant to 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 conveyancer will check with Darlington 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 Darlington 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 time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Darlington Building Society your property may be repossessed.

Preparing the Transfer of Equity with a Darlington 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 Darlington 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.

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.


Frequently asked questions relating to Darlington Building Society transfer of equity