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Family Building Society

Frequently asked questions relating to Family Building Society transfer of equity

  • I am are seeking to find an affordable conveyancing solicitor to help me sell in a transfer of equity and refinance with Family Building Society. I I am fearful of being overcharged but with plenty conveyancing firms who do transfer of equity conveyancing to pick from...who do I opt for?
  • Will I have to pay any fees for a Transfer of Equity where the current mortgage is with Family Building Society?
  • I am remortgaging my property in Littleborough does my lawyer have to be on the Family Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
  • 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 are my next steps?
  • I am trying to find a conveyancer to undertake my transfer of equity. Family Building Society have been approached for a remortgage. I thought of asking my mortgage broker. I am lead to believe he may get a kickback for suggesting someone, but also of benefit will be that he knows the lawyer, has a working relationship with them. Any flaws you see in this way of thinking?
  • My partner and myself have 50:50 shares in a investment property. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity into her name with a view to mitigate tax on rental income. If Family Building Society are content with this the legal fees are inexpensive. However what happens when we sell? Would my GGT relief be lost.
  • My friend and I got a joint mortgage with Family Building Society on a property a couple of years ago. I am now thinking of purchasing a apartment on my own and my friend would like to buy me out. Assuming we can agree an amount where do we go? Is there likely to be any issue with Family Building Society with him being responsible for the total loan as opposed to only part of it?

Examples of information requested in a lawyer form relating to Family Building Society Transfer of Equity

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

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

Who will be responsible for the costs of the Transfer of Equity?

Is it the case that one of the registered owners passed away? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..

Can you provide the details of anyone who jointly owns the property with you?

Would you like us to draft you Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?

General Advice to read in supplemental the above Family 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 Family Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of your covenants under the lease. This could trigger 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 conveyancing solicitor 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 transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Family Building Society.

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 conveyancer 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.


Frequently asked questions relating to Family Building Society transfer of equity