Questions and answers: Earl Shilton Building Society transfer of equity

• Earl Shilton Building Society have today agreed I can take over the home loan on the house. I had applied for a transfer of equity but is this a transfer of ownership of the house on top?
• I am hoping to refinance my apartment in Winchelsea moving from Accord to Earl Shilton Building Society. The apartment is currently in joint names but wish for it to be in my sole name as and when I transfer. My former partner has agreed to this and is happy to transfer equity but neither of us want to get a second conveyancer involved.
• My wife and I have 50:50 shares in a BTL. I am a top rate tax payer. Ideally I would like to complete a transfer of equity into her name to reduce our tax on rental income. Assuming Earl Shilton Building Society are content with this the legal fees are not high. What are the implications when we dispose of the property? Would my GGT relief be lost.
• Is it possible to transfer the equity held in my property with my Earl Shilton Building Society home loan?
• Given that we have been 3 years estranged I have made the decision to relinquish up my interest in the property to my husband who is re-mortgaging with Earl Shilton Building Society. Can a transfer of equity be completed inside 28 days?
• I am thinking of remortgaging my home in Winchelsea does my lawyer have to be on the Earl Shilton Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
• I already have a home loan with Earl Shilton Building Society and am keeping my existing mortgaging but wish to have it in my sole name so my ex won't be on it any longer. How long do Earl Shilton Building Society take to process the application?

Examples of questions in a conveyancer form relating to Earl Shilton Building Society Transfer of Equity

Information to consider in supplemental the above Earl Shilton Building Society transfer of equity Questions and Answers :

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

Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. If such terms are not adhered to 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 conveyancing solicitor 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 finalisation 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 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 conveyancing solicitor 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 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.