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Family Building Society

Recently asked questions relating to Family Building Society transfer of equity

  • I own a flat in Ampthill , with a Family Building Society mortgage with my former husband. Him and his fiance are going to buy me out. We had approval from Family Building Society to replace my name with hers. The transfer of equity needs to be done by a conveyancing solicitor for Family Building Society (supposedly). In order to save fees can I do the Land Registry change?
  • I am completing a Family Building Society transfer of equity form and have come to the questions regarding defaults etc. There are some debts that I have been discharging for a number of years, I understand that they no longer remain my credit score. Must I declare these?
  • I am in the market for an affordable conveyancing lawyer to assist in a transfer of equity and remortgage with Family Building Society. I I am concerned about appointing the wrong one but with so many conveyancing firms who do transfer of equity conveyancing out there...how do I know which to appoint?
  • My wife and I jointly own a buy to let. I am a top rate tax payer. Preferably I wish to complete a transfer of equity to her sole name in order reduce our tax on rental income. Assuming Family Building Society are happy with this the legal fees are inexpensive. What are the implications when we sell? Would my GGT relief be lost.
  • Is it sensible to cancel the direct debit for my mortgage with Family Building Society as soon as a date for my remortgage and transfer of equity has been agreed?
  • My former wife are seeking to get a conveyancer in place for a refinance with Family Building Society. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over the country. How necessary is it to have a conveyancer local to us?
  • I got divorced in 2010. Foolishly I never got around to change the ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Family Building Society is content to transfer the property and loan in my name (financial checks done). Does my ex need any legal representation?

Sample of information requested in a lawyer questionnaire relating to Family Building Society Transfer of Equity

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Please list all persons who occupy the property, their respective ages and relationships to you.

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

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

Please provide the name(s) and addresse(s) of those who jointly own the property with you?

Is it the case that one of the registered owners died? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.

Important warnings to consider in further to the above Family Building Society transfer of equity Questions and Answers :

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

Should the tenure of your property be 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 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 situations, 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 varies based on the market value of the property at the time of completion 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 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 conveyancer 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 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