Questions and answers: Earl Shilton Building Society transfer of equity
- I acquired a property with my brother in 2008 Since purchasing the property, we have both got married. We are now looking to do a transfer of equity so my name is removed the Earl Shilton Building Society mortgage. There is a 30k difference between the value the lender say and what the property would sell for currently. Can you offer any advice?
- Earl Shilton Building Society have today agreed I can take over the mortgage on the house. I had applied for a transfer of equity but is this a transfer of ownership of the house in addition?
- Is it possible to transfer the equity held in my property with my Earl Shilton Building Society home loan?
- My brother and I got a joint mortgage with Earl Shilton Building Society on a house a couple of years ago. I am now looking to get a property on my own and my friend would like to buy me out. On the basis that we can settle on a price what are the next steps? Would there be any potential issue with Earl Shilton Building Society with him being responsible for the total loan as opposed to only part of it?
- I plan to refinance my apartment in Heathfield
changing from Skipton to Earl Shilton Building Society. The flat is currently in joint names but I would like it to be in my sole name as and when I remortgage. My husband has agreed to this and is happy to sign a form but neither of us want to get a second lawyer involved.
- I am planning on removing a name from a joint mortgage and the Earl Shilton Building Society require me to use a lawyer to carry out the paperwork. Can you recommend a reasonably priced Littleborough
conveyancer to deal with the transfer of equity? They need to be on the Earl Shilton Building Society conveyancing panel.
- Me and my partner co-own a property in Ampthill . Mortgage is with Earl Shilton Building Society. I want to transfer full ownership to him with no payment of money but without using a conveyancer. Do you think this should be straightforward?
Questions that your conveyancer may ask about your Earl Shilton Building Society Transfer of Equity
Please let us know of you wish us to draft you Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Please give the details of anyone to be added to the property title?
Who will be responsible for the costs of the Transfer of Equity?
Has one of the registered proprietors passed away? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
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 confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Important warnings to consider in further to the above Earl Shilton 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 Earl Shilton Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not complied with you may be in violation of the lease. This could trigger 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 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 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 is dependent on the market value of the property at finalisation of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Earl Shilton Building Society.
Preparing the Transfer of Equity with a Earl Shilton 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 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 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 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.