Examples of recent questions relating to Family Building Society transfer of equity
- I jointly own a apartment in Wakefield
, with a Family Building Society loan with my ex partner. Him and his fiance are going to buy me out. We had consent from Family Building Society to remove my name with hers. The transfer of equity has to be done by a lawyer for Family Building Society (apparently). Is it possible for us to deal with the Land Registry change?
- Family Building Society yesterday agreed I can take over the home loan on the flat. I previously applied for a transfer of equity but is this a transfer of ownership at the Land Registry in addition?
- Have recently split up with my ex of twenty years. I'm now back with my mum and dad and she wants to remain in the property and pay me off. What portion am I entitled to. Is it half of the equity after redeeming the mortgage with Family Building Society? I assume proper valuations are required but I would like to be confident that I'm getting I am not being walked over
- I am am in need of a conveyancing solicitor to handle 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 will likely receive a referral fee for recommending a firm, but also of benefit will be that he knows the lawyer, has a working relationship with them. Is my logic correct?
- What if my application doesn't meet Family Building Society lending criteria for a transfer of equity?
- Do I need legal advice when doing a transfer of equity where the mortgage is to remain with Family Building Society?
- The financial adviser has suggested using their lawyer for our Transfer of Equity plus remortgage with Family Building Society - Surely it’s better to just use them?
Information that may be required from your conveyancer is likely to ask regarding your Family Building Society Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be removed from the title deeds?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Has consent been obtained from Family Building Society to the proposed transfer of equity?
Is it the case that one of the registered owners died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
General Advice to read in in addition to 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
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 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.
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 varies based on the valuation of the property at the conclusion of the transfer of equity conveyancing.
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 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.