Examples of recent questions relating to Family Building Society transfer of equity
- I am completing a Family Building Society transfer of equity application and have arrived at the section regarding debts etc. I do some debts that I have been discharging for a number of years, I understand that they no longer remain my credit score. Am I obliged to disclose these?
- I am am in need of a lawyer to undertake my transfer of equity. Family Building Society are dealing with the refinancing. I considered asking my mortgage broker. I understand he may get a kickback for suggesting a firm, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic correct?
- Have recently split up with my ex of 18 years. I'm now back with my parents again and she wants to remain in the property and pay me off. What portion am I entitled to. Is it 50% of the equity after discharging the Family Building Society home loan? I assume proper valuations are required but I would like ensure that I'm getting I am not being walked over
- I am selling my equity in apartment in Warwick to the other co-owners fiance, they are reapplying to Family Building Society. We are haggling as to who must cover the charges for the transfer of equity. Is this usually split or is one party obliged to cover the costs of?
- My father died last January leaving a unencumbered house to me and my brother 50:50. He has always lived in the property, there was a clause in the will specifying that the propertycould not be sold for three years following her death so he could continue to live there for a prescribed period. He now wishes to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the conventional way to purchase my equity?
- Will I incur any charges for a Transfer of Equity where the current home loan is with Family Building Society?
- I am in the process of removing a name from a joint mortgage and the Family Building Society need me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Timperley
conveyancing solicitor to deal with the transfer of equity? They need to be on the Family Building Society conveyancing panel.
Examples of questions in a conveyancing solicitor form concerning a Family Building Society Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Please give the name(s) and addresse(s) of anyone to be extracted from the title deeds?
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Will there be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what amounts
Please list all persons who occupy the property, their respective ages and relationships to you.
Have you approached Family Building Society to seek consent to the Transfer of Equity
Important warnings to consider in further to 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 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 freeholder. If such terms are not adhered to you may be in violation 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 lawyer 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 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 lawyer 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.