Frequently asked questions relating to Ecology Building Society transfer of equity
- My partner and I co-own a house in Miles Platting
. Home loan is with Ecology Building Society. I would like to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Is this likely to be easy to so?
- After 2 a couple of years estranged I have decided to give up my interest in our flat to my husband who is refinancing with Ecology Building Society. Could this transfer of equity be done inside 28 days?
- Do I need legal advice when doing a transfer of equity where the home loan is to remain with Ecology Building Society?
- Will I incur any fees for a Transfer of Equity where the existing mortgage is with Ecology Building Society?
- What should I be budgeting for when it comes to what conveyancing fees are for a transfer of equity? I'm in the process of remortgaging - new loan with Ecology Building Society - and have been quoted £350 including VAT by Ecology Building Society's approved conveyancing solicitor, Have I been over quoted?
- I already have a mortgage with Ecology Building Society and am keeping my existing mortgaging but wish to have have the equity transferred to my sole name so my former partner won't be on it any longer. How long does the whole transfer of equity process take?
- Have recently split up with my partner of thirty years. I'm now back with my mum and dad and she wishes to remain in the property and pay me off. What portion am I entitled to. Is it 50% of the equity after paying off the Ecology Building Society home loan? I assume proper valuations are necessary but I really need to be confident that I'm getting what I am entitled to
Examples of questions in a conveyancing solicitor form concerning a Ecology Building Society Transfer of Equity
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Have you approached Ecology Building Society to obtain consent to the Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Can you give the details of anyone who jointly owns the property with you?
Has 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.
General Advice to read in in addition to the above Ecology Building Society transfer of equity Questions and Answers :
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 properties
If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in breach of the lease. This could trigger 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 lawyer 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 finalisation 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 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.