Recently asked questions relating to Ecology Building Society transfer of equity

• I am filling out a Ecology Building Society transfer of equity form and have arrived at the questions regarding defaults etc. I do some debts that I have been clearing over a long period, I understand that they no longer remain my credit records. Must I declare these?
• I co-own a house in Romsey , with a Ecology Building Society loan with my ex partner. He and his fiance are going to acquire my share. We had consent from Ecology Building Society to substitute my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Ecology Building Society (supposedly). Can we do the Land Registry change?
• I am transferring my equity in property in Woodside 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. Is this normally shared or is one party liable for the costs of?
• When it comes to transfer of equity conveyancing involving a remortgage with Ecology Building Society should I be charged value added tax on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
• My partner and I jointly own a buy to let. I am a top rate tax payer. Preferably I wish to complete a transfer of equity to her sole name to mitigate tax on the letting income. Assuming Ecology Building Society are content with this the legal fees are not high. However what happens when we sell? As I would no longer be on the deeds would I lose my CGT relief.
• My former husband are planning to get a lawyer lined up for a refinance 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 lawyer local to us?
• I am mortgaging my apartment in Sedgefield does my lawyer have to be on the Ecology Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.

Questions that your lawyer could ask in relation to your Ecology Building Society Transfer of Equity

Important warnings to consider in supplemental the above Ecology Building Society transfer of equity Info :

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

If your property is leasehold, the lease may require that you have a license to do so from the freeholder. If such conditions are not strictly observed you may be in breach of 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 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 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 finalisation of the transfer of equity transaction.

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.