Examples of recent questions relating to Darlington Building Society transfer of equity
- My former wife are seeking to get a conveyancer in place for a new mortgage with Darlington Building Society. Transfer of Equity conveyancing is also requiredI have used the different rating based tools and the results are from all over UK. Is it important to instruct a lawyer local to us?
- What should I be budgeting for when it comes to what legal fees are for a transfer of equity? I need to transfer equity and refinance - new loan with Darlington Building Society - and have been quoted Four Hundred pounds plus VAT by Darlington Building Society's appointed conveyancing solicitor, Have I been over quoted?
- Taking into account that we have been 3 years estranged I have opted to give up my share of our apartment to my husband who is refinancing with Darlington Building Society. Can a transfer of equity be done inside one month?
- My friend and I got a joint mortgage with Darlington Building Society on a apartment in 2013. I am now thinking of buying a house by myself and my friend would like to buy me out. Assuming we can agree a price where do we go? Is there likely to be any problem with Darlington Building Society with him being on the hook for the total mortgage rather than only half of it?
- I am in the process of removing a name from a joint mortgage and the Darlington Building Society need me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Heathfield
conveyancing solicitor to deal with the transfer of equity? They need to be on the Darlington Building Society conveyancing panel.
- Can I apply to borrow more money from Darlington Building Society as part of a Transfer of Equity?
- I am looking for a conveyancing solicitor to undertake my transfer of equity. Darlington Building Society are dealing with the refinancing. I considered asking my mortgage broker. I understand he will likely get a kickback for recommending someone, but also of benefit will be that he knows the lawyer, has dealt with them before. Any flaws you see in this way of thinking?
Examples of information requested in a lawyer questionnaire concerning a Darlington Building Society Transfer of Equity
Is it the case that one of the registered proprietors died? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please clarify if you are making any payment for the Transfer of Equity and to whom and notify us the amount?
Has consent been obtained from Darlington Building Society to the proposed transfer of equity?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
General Advice to read in supporting 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 premises
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 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.
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 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 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 lawyer 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.
Information contained within 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.