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Ecology Building Society

Ecology Building Society transfer of equity example support desk enquires

  • I purchased a flat with my brother in 2009 Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name is removed the Ecology Building Society mortgage. There is a meaningful difference between the value the bank say and what the property would sell for currently. Can you offer any advice?
  • I am in the process of removing a name from a joint mortgage and the Ecology Building Society need me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Dunnington lawyer to deal with the transfer of equity? They need to be on the Ecology Building Society conveyancing panel.
  • Is there such a thing a transfer of equity stamp duty calculator?
  • I am disposing of my share of a property in Warwick to my co-owners husband, they are reapplying to Ecology Building Society. We are in heated discussion as to who should cover the legal bill for the transfer of equity. Should this be shared or is one party obliged to cover the legal bill?
  • What is the process for adding or removing names (transfer of equity) to or from my Ecology Building Society mortgage account?
  • My Ecology Building Society home loan we jointly entered into with ex, who is agreeable to come off the deeds and put the house in my name alone. Ecology Building Society have consented to the transfer of equity to my individual name. Will Ecology Building Society call my boss to confirm my salary?
  • Me and a friend got a joint mortgage with Ecology Building Society on a apartment in 2013. I am now looking to get a house on my own and my friend would like to buy me out. Assuming we can agree a price what happens next? Is there likely to be any issue with Ecology Building Society with him being solely liable for the total loan as opposed to only part of it?

Sample of information requested in a lawyer form concerning a Ecology Building Society Transfer of Equity

Have you approached Ecology Building Society to seek consent to the Transfer of Equity

Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

If you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

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

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Is the transfer of equity subject to a court order? If yes please supply a copy

Information to consider 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 premises

Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in violation of the lease. This could potentially result in 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 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 market value of the property at finalisation 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 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.

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