Recently asked questions relating to Ecology Building Society transfer of equity
- My father died early last year leaving a unencumbered bungalow to me and my half brother 50:50. Having continues to reside at the property, there was a provision in the will specifying that the propertycould not be sold for 2 years after her death so he could continue to live there for a prescribed period. He now says he would like to remain in the property beyond the specified period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the usual way to buy my share?
- I am disposing of my equity in apartment in Birmingham to the other co-owners husband, they are reapplying to Ecology Building Society. We are in heated discussion as to who must pay the legal bill for the transfer of equity. Should this be shared or is one of us liable for the charges for?
- I plan to refinance my home in Rye
moving from Nationwide to Ecology Building Society. The maisonette is jointly owned but I would like it to be in my sole name once I transfer. My husband has agreed to this and is willing to transfer equity but neither of us want to incur lawyer fees.
- I own a flat in Romsey
, with a Ecology Building Society loan with my former partner. Him and his fiance are going to acquire my share. We had the go ahead from Ecology Building Society to substitute my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Ecology Building Society (apparently). In order to save fees can I deal with the Land Registry change?
- My ex-partner and I are are looking to find an affordable conveyancing solicitor to help me sell in a transfer of equity and remortgage with Ecology Building Society. I I am concerned about by bill escalating out of control but with plenty conveyancing organisations who do transfer of equity conveyancing to choose from...who's the best?
- Ecology Building Society yesterday agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership of the house as well?
- Me and a friend got a joint mortgage with Ecology Building Society on a property about a year ago. I am now thinking of buying a house by myself and my friend would like to buy me out. Once we have agreed an amount where do we go? Would there be any potential concerns with Ecology Building Society with him being solely liable for the total loan as opposed to only part of it?
Questions that your conveyancer is likely to ask in relation to your Ecology Building Society Transfer of Equity
Please provide the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?
Have you approached Ecology Building Society to obtain consent to the 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?
If you are adding a person on to the title deeds 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 supplemental the above Ecology Building Society transfer of equity information :
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 Ecology Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such restrictions are not strictly observed you may be in violation of the lease. This could potentially result in 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 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 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 varies based on the market value of the property at the conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Ecology Building Society your property may be repossessed.
Preparing the Transfer of Equity with a Ecology 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 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 conveyancing solicitor 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.