Questions and answers: Earl Shilton Building Society transfer of equity

• Earl Shilton Building Society have just agreed I can take over the home loan on the flat. I previously applied for a transfer of equity but is this a transfer of ownership of the title deeds as well?
• How do I go about adding or removing names (transfer of equity) to or from my Earl Shilton Building Society mortgage account?
• My ex-partner and I are searching for an affordable conveyancing lawyer to help me sell in a transfer of equity and remortgage with Earl Shilton Building Society. I I am fearful of by bill escalating out of control and there are many conveyancing solicitors who do transfer of equity conveyancing to pick from...who do I opt for?
• I am disposing of my share of a flat in Warwick to the other co-owners husband, they are sticking with Earl Shilton Building Society being the the existing lender. We are debating as to who must pay the fees for the transfer of equity. Should this be shared or is one party liable for the costs of?
• Me and my partner co-own a house in Heathfield . Mortgage is with Earl Shilton Building Society. I would like to transfer full ownership to him with no payment of money but without using a conveyancing solicitor. Do you think this should be easy to so?
• I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
• I bought a house with my brother in 2009 Since then, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the Earl Shilton Building Society mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?

Information that may be required from your conveyancing solicitor is likely to ask in relation to your Earl Shilton Building Society Transfer of Equity

Important warnings to consider in in addition to the above Earl Shilton Building Society transfer of equity information :

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 Earl Shilton Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, 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 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 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 conveyancer will check with Earl Shilton 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 Earl Shilton 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 conveyancing.

Preparing the Transfer of Equity with a Earl Shilton 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 Earl Shilton 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.

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.