Top seven questions relating to Family Building Society transfer of equity

• After three years estranged I have decided to relinquish up my interest in the apartment to my husband who is re-mortgaging with Family Building Society. Could this transfer of equity be completed inside 28 days?
• My Family Building Society mortgage is in joint names with ex, he is agreeable to be removed and put the house in my name alone. Family Building Society will permit the transfer of equity to my individual name. Will Family Building Society call my boss to verify my salary?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Family Building Society?
• As things stand I have a joint Family Building Society mortgage with my step-brother and am investigating the feasibility of him taking on the whole mortgage and extracting myself from it, so as to enable me to purchase somewhere with my partner. The remaining mortgage is in the region 200k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax involved?
• I am planning on removing a name from a joint mortgage and the Family Building Society require me to use a lawyer to carry out the paperwork. Can you recommend a reasonably priced Witham conveyancer to deal with the transfer of equity? They need to be on the Family Building Society conveyancing panel.
• Me and a friend got a joint mortgage with Family Building Society on a flat in 2013. I am now thinking of purchasing a flat by myself and my friend would like to buy me out. Assuming we can agree a price what happens next? Would there be any potential issue with Family Building Society with him being on the hook for the total mortgage rather than only half of it?
• Is it sensible to stop my mortgage payments with Family Building Society once a date for my remortgage and transfer of equity has been set?

Sample of information requested in a conveyancing solicitor form concerning a Family Building Society Transfer of Equity

General Advice to read in supplemental the above Family Building Society transfer of equity Info :

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 Family 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 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 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 conveyancer will check with Family 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 Family 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 valuation of the property at finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a Family 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 Family 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 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.