Recently asked questions relating to Dudley Building Society transfer of equity
- I own a flat in Sedgefield
, with a Dudley Building Society mortgage with my ex husband. He and his fiance are going to buy me out. We had approval from Dudley Building Society to substitute my name with hers. The transfer of equity needs to be done by a conveyancer for Dudley Building Society (supposedly). In order to save fees can I do the Land Registry formalities?
- I already have a mortgage with Dudley Building Society and am retaining my existing mortgaging but seeking to have have the equity transferred to my sole name so my ex will be removed from the deeds. How long does the whole transfer of equity process take?
- My mother died last January leaving a mortgage-free bungalow to me and my half brother 50:50. Having continues to reside at the premises, there was a condition in the will specifying that the propertycould not be sold for three years after her passing so he could continue to live there for a prescribed period. He now wants to remain in the premises beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the traditional way to purchase my share?
- Given that we have been 4 years apart I have decided to give up my interest in the property to my husband who is re-mortgaging with Dudley Building Society. Can a transfer of equity be completed in less than 28 days?
- What can I do where I am unhappy with the conveyancer who handled our transfer of equity transaction?
- I am in the process of mortgaging my house in Blaenavon
does my lawyer need to be on the Dudley Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
- My former wife are planning to get a conveyancing solicitor lined up for a refinance with Dudley Building Society. Transfer of Equity conveyancing is also necessaryI have used the different comparison based websites and the results are from all over England and Wales. How necessary is it to have a conveyancer local to us?
Information that may be required from your conveyancing solicitor could ask regarding your Dudley Building Society 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 formalised?
Please give the details of anyone to be added to the title deeds?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
Who will be responsible for the costs of the Transfer of Equity?
General Advice to read in supporting the above Dudley Building Society transfer of equity Questions and Answers :
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 obtain the consent of the freeholder. If such terms are not adhered to 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 cases, 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 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 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 Dudley Building Society.
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.
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.