Top seven questions relating to Furness Building Society transfer of equity
- What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Furness Building Society?
- After three years separated I have decided to give up my share of our house to my husband who is refinancing with Furness Building Society. Can a transfer of equity be completed within four weeks?
- I am planning on removing a name from a joint mortgage and the Furness Building Society need me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Miles Platting
conveyancer to deal with the transfer of equity? They need to be on the Furness Building Society conveyancing panel.
- I am in the process of remortgaging my house in Littleborough
does my lawyer have to be on the Furness Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
- I already have a home loan with Furness Building Society and am maintaining my existing mortgaging but seeking to have have the equity transferred to my name only so my former wife will come off the title. How long does the whole transfer of equity process take?
- I am hoping to refinance my maisonette in Witham
moving from Yorkshire Building Society to Furness Building Society. The flat is currently in joint names but intend for it to be in my sole name when I switch. My former partner has agreed to this and is happy to sign a form but neither of us want to incur conveyancing solicitor charges.
- My mum passed away last May leaving a loan-free semi to me and my brother equally. He has always lived in the house, there was a clause in the will specifying that the propertycould not be sold for three years after her passing so he could reside there for a specified time frame. He now wants to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the usual way to buy my half from me?
Examples of questions in a lawyer form concerning a 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 all the relevant documents e.g. the will, death certificate etc..
Who will be responsible for the costs of the Transfer of Equity?
Would you like us to draw up a Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
Please list all persons who occupy the property, their respective ages and relationships to you.
Where you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
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
Important warnings to consider in in addition to the above Furness Building Society transfer of equity Advice :
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 have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not complied with 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 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 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 time of completion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Furness Building Society.
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.