Darlington Building Society transfer of equity example support desk enquires
- The financial adviser has recommended their conveyancer for the Transfer of Equity plus remortgage with Darlington Building Society - won’t it be easier to just instruct them?
- Me and my partner jointly own a house in Dunnington
. Home loan is with Darlington Building Society. I want to transfer full ownership to him with no payment of money but without using a lawyer. Do you think this should be straightforward?
- I am hoping to remortgage my maisonette in Wakefield
switching from Barnsley BS to Darlington Building Society. The maisonette is currently in joint names but I would like it to be in my sole name when I remortgage. My husband is OK with this and is happy to transfer equity but neither of us want to get a second lawyer involved.
- As things stand I have a joint Darlington Building Society mortgage with my cousin and am looking into the feasibility of him taking on the whole mortgage and subtracting myself from it, so as to enable me to purchase somewhere with my partner. The outstanding mortgage is in the region 300k, and the property value is about 450k. Is this a transfer of equity? Is land tax payable?
- I bought a flat with my brother six years ago Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Darlington Building Society mortgage. There is a 40k difference between the value the Darlington Building Society hold and what the property would sell for currently. Can you offer any advice?
- My brother and I got a joint mortgage with Darlington Building Society on a property in 2013. I am now thinking of buying a apartment on my own and my friend would like to buy me out. On the basis that we can settle on an amount where do we go? Would there be any potential concerns with Darlington Building Society with him being on the hook for the total mortgage as opposed to only part of it?
- My dad passed away seven months ago leaving a unencumbered bungalow to me and my half brother in equal shared. He has always lived in the house, there was a provision in her will specifying that the housecould not be sold for 2 years after her passing so he could remain there for a prescribed period. He now wishes to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the conventional way to buy my equity?
Information that may be required from your lawyer is likely to ask regarding your Darlington Building Society 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?
Would you like us to draw up a Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
Where you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Where you 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 name(s) and addresse(s) of anyone to be added to the title deeds?
Have you approached Darlington Building Society to obtain consent to the Transfer of Equity
Information to consider 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 titles
If your property is 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 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 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 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 conveyancing.
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 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 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.