Common questions relating to Dudley Building Society transfer of equity
- Is there such a thing a transfer of equity stamp duty calculator?
- I am looking for a conveyancing solicitor to undertake my transfer of equity. Dudley Building Society are dealing with the refinancing. I thought of asking my financial adviser. I understand he will likely receive a referral fee for recommending someone, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Any flaws you see in this way of thinking?
- My dad died early last year leaving a mortgage-free bungalow to me and my brother in equal shared. He has always lived in the house, there was a provision in her will specifying that the housecould not be sold for three years following her passing so he could reside there for a specified time frame. He now says he would like to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the conventional way to acquire my share?
- Me and a friend got a joint mortgage with Dudley Building Society on a flat a couple of years ago. I am now looking to get a property by myself and my friend would like to buy me out. On the basis that we can settle on an amount what are the next steps? Would there be any potential issue with Dudley Building Society with him being on the hook for the total loan rather than only part of it?
- I am planning on removing a name from a joint mortgage and the Dudley Building Society require me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Friern Barnet
conveyancing solicitor to deal with the transfer of equity? They need to be on the Dudley Building Society conveyancing panel.
- The financial adviser has recommended their conveyancing solicitor for the Transfer of Equity plus remortgage with Dudley Building Society - Surely it’s better to just use them?
- I got divorced three years ago. Foolishly I never got around to transfer ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Dudley Building Society is content to transfer the full equity in my name (financial checks done). Does my ex need a conveyancer?
Information that may be required from your conveyancer may ask about your Dudley Building Society Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Where you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please give the details of anyone to be removed from the title deeds?
Please clarify where you are making any payment for the Transfer of Equity and to whom and disclose the amount?
Information to consider in further to the above Dudley Building Society transfer of equity Info :
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 properties
If your property is leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach 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 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 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 valuation of the property at the time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Dudley Building Society your property may be repossessed.
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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information contained within 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.
