Ecology Building Society transfer of equity: q and a’s
- I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
- Ecology Building Society yesterday agreed I can take over the mortgage on my home. I had applied for a transfer of equity but is this a transfer of ownership of the house in addition?
- I am hoping to remortgage my apartment in Miles Platting
changing from RBS to Ecology Building Society. The home is currently in joint names but intend for it to be in my name only when I remortgage. My husband has agreed to this and is willing to sign a form but neither of us want to get a second conveyancing solicitor involved.
- As things stand I have a joint Ecology Building Society mortgage with my step-brother and am looking into the possibility of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to buy somewhere with my soon-to-be-wife. The outstanding mortgage is about 175k, and the property value is approx 600k. Is this a transfer of equity? Is land tax payable?
- My friend and I got a joint mortgage with Ecology Building Society on a flat about a year ago. I am now thinking of buying a flat on my own and my friend would like to buy me out. On the basis that we can settle on an amount what are the next steps? Would there be any potential problem with Ecology Building Society with him being responsible for the total mortgage rather than only part of it?
- My mother died seven months ago leaving a unencumbered bungalow to me and my brother equally. He has always lived in the property, there was a provision in her will saying the propertycould not be sold for three years after her death so he could continue to live there for a prescribed period. He now says he would like to remain in the premises beyond the specified period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the traditional way to acquire my share?
- My Ecology Building Society home loan is in joint names with ex, he is agreeable to come off the mortgage and put the house in my name alone. Ecology Building Society will permit the transfer of equity to my individual name. Will Ecology Building Society write my boss to verify my salary?
Questions that your conveyancing solicitor may ask in relation to your Ecology Building Society Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
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 let us know of you wish us to draw up a Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
Who will be responsible for the costs of the Transfer of Equity?
Please provide the details of anyone to be removed from the property title?
Is there to be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same
General Advice to read in further to the above Ecology Building Society transfer of equity information :
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
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the freeholder. 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.
Indemnity Insurance
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 situations, 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 conveyancing solicitor 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 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 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.
