Recently asked questions relating to Furness Building Society transfer of equity

• I am am in need of a conveyancer to handle my transfer of equity. Furness Building Society are dealing with the remortgage. I considered asking my financial adviser. I understand he may receive a kickback for recommending someone, but also of benefit will be that he knows the lawyer, has dealt with them before. Any flaws you see in this way of thinking?
• I already have a mortgage with Furness Building Society and am maintaining my current mortgaging but applying to have it in my name only so my ex will no longer be on the mortgage. How long do Furness Building Society take to process the application?
• How and when do I cover the costs of stamp duty chargeable for the transfer of equity in my property in my sole name which is happening simultaneously with a switching mortgage with Furness Building Society?
• My wife and I equally own a BTL. I am a higher rate tax payer. Preferably I would like to do a transfer of equity to her sole name to reduce our tax on rental income. Assuming Furness Building Society are fine with this the legal fees are not high. What are the implications when we sell? As I would no longer be on the title documents am I giving up my CGT relief.
• What if my application doesn't meet Furness Building Society lending criteria for a transfer of equity?
• I currently have a joint Furness Building Society mortgage with my cousin and am investigating the possibility of him assuming responsibility for the whole mortgage and removing myself from it, so as to enable me to buy somewhere with my partner. The remaining mortgage is approx 175k, and the property value is approx 600k. Is this a transfer of equity? Is land tax payable?
• I am hoping to refinance my home in Heathfield moving from Nationwide to Furness Building Society. The maisonette is currently in joint names but I would like it to be in my name only when I switch. My wife has verbally consented to this and is happy to sign a form but neither of us want to incur conveyancing solicitor charges.

Questions that your conveyancer is likely to ask regarding your Furness Building Society Transfer of Equity

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

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, provisions in the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in violation of 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 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 valuation of the property at the conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Furness 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 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.

Information provided on 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.