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Darlington Building Society

Recently asked questions relating to Darlington Building Society transfer of equity

  • I am planning on removing a name from a joint mortgage and the Darlington Building Society need me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Blaenavon conveyancer to deal with the transfer of equity? They need to be on the Darlington Building Society conveyancing panel.
  • My Darlington Building Society mortgage is in joint names with ex, he has agreed to be removed and let me have the property. Darlington Building Society have consented to the transfer of equity to my individual name. Will Darlington Building Society contact my employer to verify my salary?
  • I am disposing of my equity in apartment in Birmingham to my co-owners husband, they are sticking with Darlington Building Society being the the existing lender. We are in heated discussion as to who must cover the charges for the transfer of equity. Is this usually shared or is one of us liable for the costs of?
  • I am mortgaging my flat in Friern Barnet does my lawyer need to be on the Darlington Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
  • What are the average solicitors fees are for a transfer of equity? I'm in the process of remortgaging - new loan with Darlington Building Society - and have been quoted Four Hundred pounds including VAT by Darlington Building Society's approved conveyancer, Is this a reasonable price?
  • When it comes to transfer of equity conveyancing involving a remortgage with Darlington Building Society should I be invoiced VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
  • In 2012 I purchased a flat without my partner's name on the deeds. My lawyer advised it is due to the fact that she is not in the loan offer with Darlington Building Society. I'm wondering is there any way that I can put her name on the deeds?

Sample of information requested in a conveyancer questionnaire relating to Darlington Building Society Transfer of Equity

Have you approached Darlington Building Society to seek consent to the Transfer of Equity

Please provide the details of those who jointly own the property with you?

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

Please provide the details of anyone to be removed from the property title?

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 prepare Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?

Information to consider in further to the above Darlington Building Society transfer of equity information :

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 properties

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in violation of the lease. This could potentially result in 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 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 varies based on the valuation of the property at finalisation of the transfer of equity transaction.
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.

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