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

• What if my application doesn't meet Dudley Building Society lending criteria for a transfer of equity?
• The mortgage broker has suggested using their conveyancing solicitor for my Transfer of Equity plus remortgage with Dudley Building Society - Is it not simpler easier to just use them?
• How do I go about adding or subtracting names (transfer of equity) to or from my Dudley Building Society mortgage account?
• I am in the process of remortgaging my property in Miles Platting does my lawyer have to be on the Dudley Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
• Me and a friend got a joint mortgage with Dudley Building Society on a apartment about a year ago. I am now looking to get a apartment by myself and my friend would like to buy me out. On the basis that we can settle on a price where do we go? Would there be any potential issue with Dudley Building Society with him being responsible for the total loan as opposed to only half of it?
• My dad died last January leaving a unencumbered semi to me and my half brother in equal shared. Having continues to reside at the premises, there was a clause in her will specifying that the housecould not be sold for three years after her death so he could continue to live there for a prescribed period. He now wants to remain in the house beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the traditional way to buy my share?
• Me and my partner co-own a property in Littleborough . Mortgage is with Dudley Building Society. I wish to transfer full ownership to him with no passing of money but without using a conveyancer. Do you think this should be straightforward?

Information that may be required from your conveyancer could ask regarding your Dudley Building Society Transfer of Equity

Information to consider in supporting the above Dudley 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 Dudley Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with you may be in violation of your covenants under the lease. This could potentially result in 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 lawyer 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 conveyancing.

Preparing the Transfer of Equity with a Dudley 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 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 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 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.