Recently asked questions relating to Family Building Society transfer of equity
- Our mortgage broker has recommended their conveyancer for my Transfer of Equity plus remortgage with Family Building Society - Surely it’s advisable to just instruct them?
- I co-own a house in Rye
, with a Family Building Society mortgage with my ex husband. Him and his new partner are going to acquire my share. We had approval from Family Building Society to substitute my name with hers. The transfer of equity needs to be completed by a lawyer for Family Building Society (supposedly). Is it possible for us to do the Land Registry formalities?
- I am planning on removing a name from a joint mortgage and the Family Building Society need me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Crabtree
lawyer to deal with the transfer of equity? They need to be on the Family Building Society conveyancing panel.
- How much the typical solicitors costs are for a transfer of equity? I'm in the process of remortgaging - moving over to Family Building Society - and have been quoted Three Hundred pounds plus VAT by Family Building Society's appointed lawyer, Have I been over quoted?
- Do I need legal advice when doing a transfer of equity where the home loan is to remain with Family Building Society?
- My former husband are seeking to get a conveyancer in place for a new mortgage with Family Building Society. Transfer of Equity conveyancing is also requiredI have used the different rating based services and the results are from all over UK. Is it important to have a conveyancing solicitor local to us?
- I got divorced four years ago. For some reason I never dealt with the change the ownership from both our names to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Family Building Society is content to transfer the full equity in my name (financial checks done). Does my ex need a solicitor?
Questions that your lawyer may ask about your Family Building Society Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Has consent been obtained from Family Building Society to the proposed transfer of equity?
Has one of the registered proprietors passed away? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Please confirm where you are making any payment for the Transfer of Equity and to whom and notify us the amount?
Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Information to consider in further to the above Family Building Society transfer of equity Info :
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 properties
If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. 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.
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 is dependent on the valuation of the property at the conclusion 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 contained within 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.