Darlington Building Society transfer of equity example support desk enquires
- Darlington Building Society have just agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry as well?
- 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 simultaneously with a refinancing via Darlington Building Society?
- I own a apartment in Dunnington
, with a Darlington Building Society loan with my former husband. He and his new partner are going to acquire my share. We had approval 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). Can we do the Land Registry change?
- My partner and myself have equal shares in a buy to let. I am a higher rate tax payer. Preferably I would like to do a transfer of equity to her sole name with a view to mitigate tax on rental income. Assuming Darlington Building Society are happy with this the legal fees are not high. However what happens when we sell? Would my GGT relief be lost.
- What if my application doesn't meet Darlington Building Society lending criteria for a transfer of equity?
- Is stamp duty payable when it comes to an transfer of equity with a mortgage with Darlington Building Society?
- I intend to refinance my home in Ampthill moving from Godiva Mortgages to Darlington Building Society. The flat is currently in joint names but wish for it to be in my name only as and when I remortgage. My wife is OK with this and is happy to transfer equity but neither of us want to incur conveyancer fees.
Sample of information requested in a conveyancing solicitor questionnaire relating to Darlington Building Society Transfer of Equity
Please confirm if you are making any payment for the Transfer of Equity and to whom and notify us the amount?
Can you give the details of anyone who jointly owns the property with you?
Has one of the registered owners passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Please give the details of anyone to be added to the title deeds?
General Advice to read in supporting the above Darlington Building Society transfer of equity information :
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 Darlington Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not complied with you may be in violation of the lease. This could trigger the freeholder taking enforcement action against you.
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 conveyancing solicitor 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 valuation of the property at finalisation 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 conveyancing solicitor 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 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.