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Family Building Society transfer of equity example support desk enquires

  • My fiance and I jointly own a investment property. I am a top rate tax payer. Ideally I would like to complete a transfer of equity to her sole name to reduce our tax on the letting income. If Family Building Society are happy with this the legal fees are not high. What are the implications when we sell? As I would no longer be on the title documents would I lose my CGT relief.
  • Is there such a thing a transfer of equity stamp duty calculator?
  • I am am in need of a lawyer to deal with my transfer of equity. Family Building Society have been approached for a refinancing. I thought of asking my mortgage broker. I am lead to believe he will likely receive a kickback for recommending 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?
  • I currently have a joint Family Building Society mortgage with my brother and am investigating the possibility of him assuming responsibility for the whole mortgage and subtracting myself from it, so as to enable me to purchase a property with my soon-to-be-wife. The remaining mortgage is in the region 300k, and the property value is in the region 500k. Is this a transfer of equity? Is stamp duty due?
  • I plan to refinance my apartment in Dunnington changing from Godiva Mortgages to Family Building Society. The maisonette is currently in joint names but propose for it to be in my name only when I remortgage. My wife is OK with this and is happy to transfer equity but neither of us want to incur lawyer charges.
  • I am in the process of removing a name from a joint mortgage and the Family Building Society require me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Ampthill lawyer to deal with the transfer of equity? They need to be on the Family Building Society conveyancing panel.
  • After 2 a couple of years estranged I have made the decision to transfer my share of the apartment to my husband who is re-mortgaging with Family Building Society. Can a transfer of equity be done within four weeks?

Information that may be required from your conveyancer could ask regarding your Family 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?

Would you like us to prepare Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?

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

Please provide the details of anyone to be added to the property title?

Please provide the name(s) and addresse(s) 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

General Advice to read in supporting the above Family Building Society transfer of equity Questions and Answers :

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 premises

Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed 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 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 market value of the property at the time of completion 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