Top seven questions relating to Dudley Building Society transfer of equity

• What can I do where I am dissatisfied with the conveyancing solicitor who did my transfer of equity transaction?
• Me and my partner jointly own a flat in Sedgefield . Mortgage is with Dudley Building Society. I would like to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Is this likely to be easy to so?
• I am refinancing my home in Miles Platting does my lawyer have to be on the Dudley Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
• Can I apply to borrow a further advance from Dudley Building Society as part of a Transfer of Equity?
• As things stand I have a joint Dudley Building Society mortgage with my brother and am investigating the option of him taking on the outstanding mortgage and removing myself from it, to enable me to purchase a property with my fiance. The outstanding mortgage is in the region 175k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty involved?
• My existing mortgage is with Dudley Building Society. Can I transfer equity to someone under eighteen years old?
• I plan to refinance my apartment in Witham changing from Virgin Money to Dudley Building Society. The apartment is jointly owned but I would like it to be in my sole name once I switch. My former partner has agreed to this and is happy to transfer equity but neither of us want to incur lawyer charges.

Information that may be required from your conveyancing solicitor may ask in relation to your Dudley Building Society Transfer of Equity

Caveats to be read in supporting the above Dudley 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 Dudley 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 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 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 conveyancing solicitor will check with Dudley 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 Dudley 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 market value of the property at the conclusion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Dudley Building Society Mortgage

When it comes to preparing the the Land Registry documents your conveyancer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Dudley 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.