Top seven questions relating to Ecology Building Society transfer of equity
- Have recently separated from my partner of twenty years. I'm now living with my parents again and she wishes to stay in the apartment and pay me off. What portion do I get. 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 I am not being taken advantage of
- My brother and I got a joint mortgage with Ecology Building Society on a flat a couple of years ago. I am now looking to get a property by myself and my friend would like to buy me out. Assuming we can agree an amount what happens next? Is there likely to be any concerns with Ecology Building Society with him being solely liable for the total loan rather than only half of it?
- I am answering a Ecology Building Society transfer of equity form and have arrived at the part regarding debts etc. I do some debts that I have been clearing since 2008, I understand that they no longer remain my credit records. Must I set these out?
- In 2009 I bought a flat without my partner's name on the deeds. My lawyer said it is because she is not in the mortgage with Ecology Building Society. Is it possible for me to put her name on the deeds?
- I am planning on removing a name from a joint mortgage and the Ecology Building Society require me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Blaenavon
lawyer to deal with the transfer of equity? They need to be on the Ecology Building Society conveyancing panel.
- I bought a flat with a friend in 2010 Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the Ecology Building Society mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- What if my application doesn't meet Ecology Building Society lending criteria for a transfer of equity?
Information that may be required from your conveyancer is likely to ask regarding your Ecology Building Society Transfer of Equity
Please give the details of anyone to be added to the property title?
Please clarify if you are making any payment for the Transfer of Equity and to whom and disclose any such sums?
Can you give the name(s) and addresse(s) of those who jointly own the premises with you?
Please give the details of anyone to be extracted from the title deeds?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please provide a copy of your National Insurance Number?
Important warnings to consider in in addition to the above Ecology Building Society transfer of equity Advice :
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 have a license to do so from the landlord. If such conditions are not complied with you may be in violation of your covenants under the lease. This could trigger 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 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 is dependent on the valuation of the property at the time of completion 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 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 contained within 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.