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Darlington Building Society

Darlington Building Society transfer of equity: q and a’s

  • What if my application doesn't meet Darlington Building Society lending criteria for a transfer of equity?
  • I am completing a Darlington Building Society transfer of equity form and have arrived at the part concerning debts etc. There are some debts that I have been paying off over a long period, in fact they have long since disappeared from my credit records. Do I need to set these out?
  • Will I incur any fees for a Transfer of Equity where the existing mortgage is with Darlington Building Society?
  • As things stand I have a joint Darlington Building Society mortgage with my brother and am investigating the feasibility of him taking on the whole mortgage and removing myself from it, so as to enable me to purchase a place with my partner. The remaining mortgage is in the region 175k, and the property value is in the region 600k. Is this a transfer of equity? Is stamp duty payable?
  • Is there such a thing a transfer of equity stamp duty calculator?
  • What are the average legal fees are for a transfer of equity? I'm in the process of remortgaging - moving over to Darlington Building Society - and have been quoted Four Hundred pounds including VAT by Darlington Building Society's approved conveyancer, Have I been over quoted?
  • I plan to remortgage my flat in Winchelsea changing from RBS to Darlington Building Society. The maisonette is jointly owned but wish for it to be in my name only when I switch. My wife has agreed to this and is willing to transfer equity but neither of us want to get a second conveyancer involved.

Information that may be required from your conveyancer is likely to ask about your Darlington Building Society Transfer of Equity

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?

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Please list all persons who occupy the property, their respective ages and relationships to you.

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

Who will be responsible for the costs of the Transfer of Equity?

Please provide the details of anyone to be added to the property title?

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 titles

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. 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.

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 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 varies based on the valuation of the property at the conclusion 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 conveyancing solicitor 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.

Information provided 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.


Frequently asked questions relating to Darlington Building Society transfer of equity