Examples of recent questions relating to Ecology Building Society transfer of equity
- After three years estranged I have decided to relinquish up my share of our property to my husband who is refinancing with Ecology Building Society. Could this transfer of equity be completed within four weeks?
- My wife and I have 50:50 shares in a BTL. I am a top rate tax payer. Preferably I would like to complete a transfer of equity to her sole name in order reduce our tax on the letting income. If Ecology Building Society are fine with this the legal fees are inexpensive. What are the implications when we dispose of the property? As I would no longer be on the deeds would I lose my CGT relief.
- I am hoping to remortgage my maisonette in Romsey
moving from Yorkshire Building Society to Ecology Building Society. The apartment is jointly owned but wish for it to be in my name only as and when I remortgage. My husband is OK with this and is happy to sign a form but neither of us want to incur lawyer fees.
- Online reading suggests that solicitors are more expensive than conveyancers when it comes to transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I need to be transferring equity and at the same time remortgaging with Ecology Building Society
- I purchased a property with a friend six years ago Since then, we have both got married. We are now looking to do a transfer of equity so my name comes off the Ecology Building Society mortgage. There is a 40k difference between the value the mortgage company say and what the property would sell for currently. Can you offer any advice?
- Can I apply to request a further advance from Ecology Building Society as part of a Transfer of Equity?
- I am am in need of a lawyer to undertake my transfer of equity. Ecology Building Society are dealing with the refinancing. I thought of asking my financial adviser. I understand he may receive a referral fee for suggesting someone, but also of benefit will be that he knows the lawyer, has a working relationship with them. Is my logic misguided?
Sample of information requested in a lawyer form concerning a Ecology Building Society Transfer of Equity
Please give the details of anyone to be removed from the title deeds?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Have you approached Ecology Building Society to seek consent to the Transfer of Equity
Please provide the details of those who jointly own the property with you?
Is it the case that one of the registered owners died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Information to consider in conjunction with the above Ecology Building Society transfer of equity Info :
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, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of 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.
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 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 varies based on the valuation of the property at finalisation of the transfer of equity transaction.
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 conveyancer 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 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.