Frequently asked questions relating to Darlington Building Society transfer of equity
- My fiance and myself have 50:50 shares in a BTL. I am a top rate tax payer. Ideally I would like to do a transfer of equity into her name to mitigate tax on rental income. If Darlington Building Society are happy with this the legal fees are not prohibitive. However what happens when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.
- My ex are planning to get a conveyancing solicitor lined up for a remortgage with Darlington Building Society. Transfer of Equity conveyancing is also neededI have used the different comparison based websites and the results are from all over the country. Do we need to have a lawyer local to us?
- My Darlington Building Society home loan we jointly entered into with ex, he has agreed to be removed and put the house in my name alone. Darlington Building Society have consented to the transfer of equity to my individual name. Do Darlington Building Society get in touch with my company to check my salary?
- I am completing a Darlington Building Society transfer of equity form and have arrived at the questions regarding defaults etc. There are some debts that I have been clearing since 2009, I understand that they have long since disappeared from my credit score. Do I need to set these out?
- Last year bought a apartment without my fiance’s name on the deeds. My conveyancer said it is due to the fact that she is not in the mortgage with Darlington Building Society. Is it possible for me to put her name on the deeds?
- I am in the market for a quality conveyancing lawyer to help me sell in a transfer of equity and remortgage with Darlington Building Society. I I am fearful of by bill escalating out of control but with various conveyancing organisations who do transfer of equity conveyancing to pick from...who do I opt for?
- I bought a house with my brother in 2008 Since purchasing 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 meaningful difference between the value the mortgage company say and what the property would sell for currently. Can you offer any advice?
Information that may be required from your conveyancing solicitor could ask in relation to your Darlington Building Society Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please provide the name(s) and addresse(s) of those who jointly own the premises with you?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Has one of the registered proprietors passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
General Advice to read in supplemental the above Darlington Building Society transfer of equity Info :
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, 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 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 varies based on the valuation of the property at the time of completion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Darlington Building Society.
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.
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.