Questions and answers: Darlington Building Society transfer of equity
- How much the typical conveyancing costs are for a transfer of equity? I need to transfer equity and remortgage - moving over to Darlington Building Society - and have been quoted £350 plus VAT by Darlington Building Society's approved conveyancer, Have I been over quoted?
- I currently have a joint Darlington Building Society mortgage with my cousin and am looking into the possibility of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to purchase a property with my soon-to-be-wife. The remaining mortgage is in the region 200k, and the property value is about 450k. Is this a transfer of equity? Is land tax involved?
- I recently bought a house without my partner's name on the ownership paperwork. My conveyancer said it is because she was not in the loan offer with Darlington Building Society. I'm wondering is there any way that I can put her name on the documents at HM Land Registry?
- My ex-partner and I are are looking to find an affordable conveyancing lawyer to help me sell in a transfer of equity and refinance with Darlington Building Society. I am aware of the dangers of getting ripped off but with various conveyancing organisations who do transfer of equity conveyancing to pick from...who's the best?
- Been looking at consumer forums that solicitors are more expensive than conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor if I am transferring equity and simultaneously remortgaging with Darlington Building Society
- What legal advice do I need when doing a transfer of equity where the home loan is to remain with Darlington Building Society?
- Is it possible to transfer the equity held in my property with my Darlington Building Society mortgage?
Information that may be required from your conveyancing solicitor could ask about your Darlington Building Society Transfer of Equity
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Have you approached Darlington Building Society to obtain consent to the Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Please give the name(s) and addresse(s) of anyone who jointly owns the property with you?
Please give the name(s) and addresse(s) of anyone to be extracted from the property title?
Please inform us where you are making any payment for the Transfer of Equity and to whom and notify us any such sums?
General Advice to read in supporting the above Darlington Building Society transfer of equity Advice :
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
If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such restrictions are not strictly observed you may be in violation of 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 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 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 market value 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 should not be regarded as 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.