Questions and answers: Earl Shilton Building Society transfer of equity
- I am answering a Earl Shilton Building Society transfer of equity application and have arrived at the section concerning defaults etc. I do some debts that I have been reducing since 2007, in fact they no longer remain my credit rating. Must I disclose these?
- I am in the process of removing a name from a joint mortgage and the Earl Shilton Building Society need me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Friern Barnet
lawyer to deal with the transfer of equity? They need to be on the Earl Shilton Building Society conveyancing panel.
- I got my Decree Absolute in 2010. For some reason I never dealt with the transfer ownership from both our names to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Earl Shilton Building Society is willing to transfer the property and loan in my name (affordability checks done). Does she need a solicitor?
- Me and my former fiance and I are searching for a responsive conveyancing solicitor to help me sell in a transfer of equity and refinance with Earl Shilton Building Society. I I am concerned about by bill escalating out of control but with many conveyancing organisations who do transfer of equity conveyancing to choose from...how do I know which to select?
- Earl Shilton Building Society yesterday agreed I can take over the mortgage on the flat. I previously applied for a transfer of equity but is this a transfer of ownership of the title deeds on top?
- My wife and myself have equal shares in a investment property. I am a higher rate tax payer. Preferably I would like to complete a transfer of equity into her name with a view to reduce our tax on the letting income. If Earl Shilton Building Society are fine with this the legal fees are inexpensive. What are the implications when we sell? Would my GGT relief be lost.
- Is stamp duty payable when it comes to an transfer of equity with a mortgage with Earl Shilton Building Society?
Examples of information requested in a lawyer questionnaire concerning a Earl Shilton Building Society Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Has consent been obtained from Earl Shilton Building Society to the proposed transfer of equity?
Please confirm if you are making any payment for the Transfer of Equity and to whom and notify us the amount?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
If you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Can you give the name(s) and addresse(s) of those who jointly own the property with you?
General Advice to read in in addition to the above Earl Shilton Building Society transfer of equity Advice :
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 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 terms are not adhered to you may be in breach of 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 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.
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 lawyer 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.
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.
