Furness Building Society transfer of equity: q and a’s

• I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
• Me and my former wife and I are in the market for an affordable conveyancing solicitor to help me sell in a transfer of equity and remortgage with Furness Building Society. I want to avoid being ripped off but with so many conveyancing firms who do transfer of equity conveyancing out there...how do I know which one to select?
• My ex are planning to get a conveyancing solicitor in place for a refinance with Furness Building Society. Transfer of Equity conveyancing is also requiredI have used the different comparison based tools and the results are from all over England and Wales. Is it important to have a lawyer local to us?
• I got divorced two years ago. I simply 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 presumably the way forward. Furness Building Society is willing to transfer the property and loan in my name (affordability checks done). Does she need any legal representation?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Furness Building Society?
• I jointly own a property in Timperley , with a Furness Building Society loan with my ex partner. He and his fiance are going to buy me out. We had consent from Furness Building Society to remove my name with hers. The transfer of equity has to be completed by a lawyer for Furness Building Society (apparently). Is it possible for us to deal with the Land Registry change?
• Am I best advised cancel my mortgage payments with Furness Building Society once a date for my remortgage and transfer of equity has been set?

Questions that your conveyancer could ask in relation to your Furness Building Society Transfer of Equity

Caveats to be read in further to the above Furness 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 Furness 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 require that you have a license to do so from the landlord. If such restrictions are not strictly observed you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 conveyancing solicitor 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 is dependent on the market value of the property at the conclusion of the transfer of equity transaction.

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 lawyer 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.