Furness Building Society transfer of equity: q and a’s
- I own a property in Witham
, with a Furness Building Society loan with my ex partner. Him and his new partner are going to acquire my share. We had approval from Furness Building Society to remove my name with hers. The transfer of equity needs to be completed by a lawyer for Furness Building Society (supposedly). Can we deal with the Land Registry change?
- I plan to refinance my maisonette in Blaenavon
changing from Yorkshire Building Society to Furness Building Society. The maisonette is jointly owned but propose for it to be in my sole name as and when I switch. My former partner is OK with this and is willing to sign a form but neither of us want to get a second conveyancing solicitor involved.
- Is there such a thing a transfer of equity stamp duty calculator?
- Furness Building Society yesterday agreed I can take over the home loan on the house. I previously applied for a transfer of equity but presumably there is a transfer of ownership at HMLR in addition?
- In 2011 I bought a flat without my partner's name on the title. My conveyancer said it is due to the fact that she was not in the loan offer with Furness Building Society. Is it possible for me to add her name on the documents at HMLR?
- What are the average legal charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Furness Building Society - and have been quoted £350 plus VAT by Furness Building Society's approved conveyancer, Have I been over quoted?
- Have recently separated from my wife of thirty years. I'm now back with my mum and dad and she wants to stay in the apartment and pay me off. What percentage do I get. Is it half of the equity after redeeming the Furness Building Society home loan? I assume proper valuations are necessary but I would like ensure that I'm getting the best deal
Questions that your conveyancer may ask regarding your Furness Building Society Transfer of Equity
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.
Is the transfer of equity subject to a court order? If yes please supply a copy
Have you approached Furness Building Society to obtain consent to the Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please provide the details of those who jointly own the premises with you?
General Advice to 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 properties
Should the tenure of your property be leasehold, provisions in the lease may require 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.
If the transfer of equity is made pursuant to 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 conveyancer 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 transaction.
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 conveyancing solicitor 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.
Content 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.