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Ecology Building Society

Ecology Building Society transfer of equity example support desk enquires

  • Have recently separated from my wife of thirty years. I'm now back with my mum and dad and she wants to stay in the apartment and buy me out. What portion do I get. Is it 50% of the equity after redeeming the mortgage with Ecology Building Society? I assume proper valuations are required but I would like ensure that I'm getting the best deal
  • My dad passed away early last year leaving a loan-free semi to me and my step brother in equal shared. He has always lived in the premises, there was a clause in her will saying the premisescould not be sold for 24 months after her death so he could reside there for a prescribed period. He now wants to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the usual way to acquire my equity?
  • At what stage do I incur stamp duty payable for the transfer of equity in my house in my name alone which is happening simultaneously with a refinancing via Ecology Building Society?
  • My Ecology Building Society mortgage we jointly entered into with ex, who is agreeable to come off the mortgage and let me have the property. Ecology Building Society will permit the transfer of equity to my individual name. Do Ecology Building Society write my employer to confirm my salary?
  • Me and a friend got a joint mortgage with Ecology Building Society on a apartment about a year ago. I am now looking to get a flat on my own and my friend would like to buy me out. Assuming we can agree a price what are the next steps? Is there likely to be any problem with Ecology Building Society with him being solely liable for the total loan as opposed to only half of it?
  • What is the process for adding or removing names (transfer of equity) to or from my Ecology Building Society mortgage account?
  • My former wife are looking to get a conveyancer in place for a new mortgage with Ecology Building Society. Transfer of Equity conveyancing is also neededI have used the different comparison based services and the results are from all over England and Wales. How necessary is it to have a conveyancer local to us?

Questions that your conveyancer is likely to ask regarding your Ecology Building Society Transfer of Equity

Has consent been obtained from Ecology Building Society to the proposed transfer of equity?

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of 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

Has one of the registered proprietors passed away? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.

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

Please provide a copy of your National Insurance Number?

Caveats to be read in further to the above Ecology 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 Ecology 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 freeholder. If such conditions are not complied with you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to 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 conveyancer will check with Ecology 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 Ecology 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 Ecology Building Society.

Preparing the Transfer of Equity with a Ecology 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 Ecology 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 contained within 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.


Frequently asked questions relating to Ecology Building Society transfer of equity