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Dudley Building Society

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

  • When it comes to transfer of equity conveyancing involving a remortgage with Dudley Building Society should I be invoiced value added tax on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
  • Me and a friend got a joint mortgage with Dudley Building Society on a property about a year ago. I am now thinking of purchasing a property on my own and my friend would like to buy me out. Once we have agreed a figure where do we go? Is there likely to be any concerns with Dudley Building Society with him being solely liable for the total mortgage rather than only part of it?
  • Me and my partner co-own a flat in Heathfield . Mortgage is with Dudley Building Society. I would like to transfer full ownership to him with no passing of money but without using a lawyer. Is this likely to be easy to so?
  • I plan to refinance my apartment in Romsey changing from Accord to Dudley Building Society. The maisonette is jointly owned but I would like it to be in my sole name as and when I remortgage. My husband is OK with this and is happy to sign a form but neither of us want to incur lawyer fees.
  • Can I apply to borrow a further advance from Dudley Building Society as part of a Transfer of Equity?
  • My wife and I equally own a BTL. I am a top rate tax payer. Preferably I wish to do a transfer of equity into her name in order reduce our tax on the letting income. Assuming Dudley Building Society are fine with this the legal fees are not high. What are the implications when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.
  • I am thinking of remortgaging my flat in Miles Platting does my lawyer need to be on the Dudley Building Society Solicitor panel. The conveyancing also involves a transfer of equity.

Examples of questions in a lawyer questionnaire concerning a Dudley Building Society Transfer of Equity

Please give the details of anyone to be extracted from the property title?

Where you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Please provide the details of anyone to be added to the title deeds?

Please provide a copy of your National Insurance Number?

Have you approached Dudley Building Society to seek consent to the Transfer of Equity

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Important warnings to consider in supplemental 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

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 breach of your covenants under the lease. This could trigger 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 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 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 varies based on the valuation of the property at the conclusion 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 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 conveyancer 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.


Frequently asked questions relating to Dudley Building Society transfer of equity