Furness Building Society transfer of equity example support desk enquires
- My friend and I got a joint mortgage with Furness Building Society on a house in 2013. I am now looking to get a property on my own and my friend would like to buy me out. Assuming we can agree a price where do we go? Is there likely to be any concerns with Furness Building Society with him being on the hook for the total mortgage rather than only part of it?
- I co-own a property in Blaenavon
, with a Furness Building Society mortgage with my ex husband. He and his new partner are going to acquire my share. We had the go ahead from Furness Building Society to remove my name with hers. The transfer of equity needs to be done by a conveyancer for Furness Building Society (supposedly). Is it possible for us to do the Land Registry change?
- After three years apart I have decided to relinquish up my share of our flat to my husband who is refinancing with Furness Building Society. Could this transfer of equity be done in 28 days?
- My father died last March leaving a loan-free property to me and my half brother in equal shared. Having continues to reside at the house, there was a condition in her will saying the premisescould not be sold for 24 months following her passing so he could reside there for a specified time frame. He now wishes to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the conventional way to buy my equity?
- My ex are planning to get a lawyer lined up for a new mortgage with Furness Building Society. Transfer of Equity conveyancing is also requiredI have used the different rating based tools and the results are from all over the country. Is it important to have a conveyancing solicitor local to us?
- I am planning on removing a name from a joint mortgage and the Furness Building Society need me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Sedgefield
conveyancing solicitor to deal with the transfer of equity? They need to be on the Furness Building Society conveyancing panel.
- My current mortgage is with Furness Building Society. Can I transfer equity to someone less than 18 years old?
Questions that your lawyer is likely to ask regarding your Furness Building Society Transfer of Equity
Please let us know of you wish us to prepare Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
Please provide a copy of your National Insurance Number?
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?
Is there to be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what sums
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please provide the details of anyone to be extracted from the property title?
Information to consider in conjunction with the above Furness Building Society transfer of equity Info :
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 Furness Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
If your property is leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.
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 lawyer will check with Furness 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 Furness 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.
If you do not keep up the payments on your mortgage with Furness Building Society your property may be repossessed.
Preparing the Transfer of Equity with a Furness 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 Furness 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.
Content 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.