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Ecology Building Society

Ecology Building Society transfer of equity example support desk enquires

  • My wife and myself 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 with a view to mitigate tax on the letting income. Assuming Ecology Building Society are fine with this the legal fees are not prohibitive. What are the implications when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
  • Will I have to pay any charges for a Transfer of Equity where the current home loan is with Ecology Building Society?
  • I am disposing of my share of a house in Warwick to the other co-owners fiance, they are reapplying to Ecology Building Society. We are haggling as to who should cover the legal bill for the transfer of equity. Should this be shared or is one party liable for the costs of?
  • Am I best advised stop my mortgage payments with Ecology Building Society as soon as a date for my remortgage and transfer of equity has been agreed?
  • My mum passed away seven months ago leaving a unencumbered bungalow to me and my brother in equal shared. He has always lived in the premises, there was a provision in the will saying the housecould not be sold for three years following her death so he could reside there for a specified time frame. He now wants to remain in the house beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the traditional way to acquire my half from me?
  • Is it possible to transfer the equity held in my property with my Ecology Building Society mortgage?
  • My Ecology Building Society home loan we jointly entered into with ex, who is agreeable to be removed and put the house in my name alone. Ecology Building Society have consented to the transfer of equity to me solely. Will Ecology Building Society contact my boss to confirm my salary?

Sample of questions in a conveyancer form concerning a Ecology Building Society Transfer of Equity

Please list all persons who occupy the property, their respective ages and relationships to you.

Would you like us to prepare Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?

Please let us know where you are making any payment for the Transfer of Equity and to whom and notify us the amount?

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 give the details of anyone to be removed from the property title?

If you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Important warnings to consider in in addition to the above Ecology Building Society transfer of equity Questions and Answers :

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 have a requirement for notices to be served and that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in violation 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 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 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 is dependent on the valuation of the property at the time of completion 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 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Content 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.


Frequently asked questions relating to Ecology Building Society transfer of equity