Examples of recent questions relating to Ecology Building Society transfer of equity
- I am filling out a Ecology Building Society transfer of equity form and have come to the questions regarding defaults etc. There are some debts that I have been paying off over a long period, in fact they have long since disappeared from my credit rating. Am I obliged to set these out?
- When it comes to transfer of equity conveyancing involving a remortgage with Ecology Building Society should I be charged VAT 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
- I already have a home loan with Ecology Building Society and am keeping my current mortgaging but applying to have it in my name only so my ex won't be on it any longer. How long can it take for the forms to be processed?
- My dad passed away half a year ago leaving a loan-free semi to me and my step brother 50:50. He has always lived in the premises, there was a provision in her will specifying that the housecould not be sold for 2 years after her passing so he could continue to live there for a while. He now wants to remain in the house beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the conventional way to buy my share?
- My friend and I got a joint mortgage with Ecology Building Society on a flat in 2013. I am now looking to get a house by myself and my friend would like to buy me out. Assuming we can agree a figure where do we go? Would there be any potential issue with Ecology Building Society with him being on the hook for the total mortgage rather than only part of it?
- Our mortgage broker has suggested using their lawyer for our Transfer of Equity plus remortgage with Ecology Building Society - won’t it be better to just instruct them?
- Law week I separated from my ex of thirty years. I'm now living with my parents again and she wishes to remain in the flat and pay me off. What percentage am I entitled to. Is it 50% of the equity after discharging the mortgage with Ecology Building Society? I assume proper valuations are required but I would like ensure that I'm getting I am not being walked over
Sample of information requested in a lawyer form relating to Ecology Building Society Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be extracted from the property title?
Please let us know where you are providing any payment for the Transfer of Equity and to whom and notify us the amount?
Can you give the details of those who jointly own the property with you?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
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)?
Has consent been obtained from Ecology Building Society to the proposed transfer of equity?
Caveats to be read in in addition to 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 properties
If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such terms are not adhered to you may be in breach 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 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 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 is dependent on the market value of the property at the conclusion of the transfer of equity conveyancing.
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 conveyancing solicitor 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.