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Are you in need of a Transfer of Equity with a Family Building Society mortgage? Failing to check that a lawyer is on the Family Building Society list of approved solicitors can put your transfer at risk of delay or failure. Only LenderPanel.com provides a subset of authorised conveyancers for over 130 lenders.

Recently asked questions relating to Family Building Society transfer of equity

  • I am filling out a Family Building Society transfer of equity application and have come to the section that asks about defaults etc. There are some debts that I have been paying off since 2009, in fact they have long since disappeared from my credit score. Must I disclose these?
  • My friend and I got a joint mortgage with Family Building Society on a flat about a year ago. I am now looking to get a house on my own and my friend would like to buy me out. Once we have agreed a price where do we go? Would there be any potential issue with Family Building Society with him being solely liable for the total mortgage rather than only half of it?
  • My decree absolute is through as is the consent order. Now I must deal with the transfer of equity for the property and the Family Building Society mortgage. I have called Family Building Society for the transfer of equity forms. What happens next?
  • I am trying to find a conveyancer to deal with my transfer of equity. Family Building Society are dealing with the remortgage. I considered asking my financial adviser. I am lead to believe he will likely get a kickback for suggesting a firm, but also of benefit will be that he knows the conveyancer, has dealt with them before. Any flaws you see in this way of thinking?
  • I am selling my share of a apartment in Hendon to my co-owners husband, they are reapplying to Family Building Society. We are debating as to who must pay the legal bill for the transfer of equity. Should this be split or is one party obliged to cover the costs of?
  • Is it possible to apply to borrow a further advance from Family Building Society as part of a Transfer of Equity?
  • Can I transfer the equity held in my property with my Family Building Society home loan?

Information that may be required from your lawyer may ask about your Family Building Society Transfer of Equity

Please give the details of anyone to be extracted from the property title?

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

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” Questionnaire.

Has consent been obtained from Family Building Society to the proposed transfer of equity?

Will there 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 what sums

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

Information to consider 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 premises

If your property is leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such conditions are not strictly observed you may be in violation 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 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 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 is dependent on the valuation of the property at the conclusion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Family Building Society your property may be repossessed.

Preparing the Transfer of Equity with a Family 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 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 provided 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 Family Building Society transfer of equity