Furness Building Society transfer of equity example support desk enquires
- I currently have a joint Furness Building Society mortgage with my step-brother and am investigating the option of him assuming responsibility for the outstanding mortgage and extracting myself from it, so as to enable me to buy a property with my fiance. The outstanding mortgage is about 175k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty due?
- Is it possible to apply to borrow a further advance from Furness Building Society as part of a Transfer of Equity?
- I am in the process of refinancing my apartment in Miles Platting
does my lawyer need to be on the Furness Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
- My decree absolute has gone through as is the consent order. Now I have to deal with the transfer of equity for the property and the Furness Building Society home loan. I have contacted Furness Building Society for the transfer of equity forms. What do I do now?
- What should I be budgeting for when it comes to what conveyancing charges are for a transfer of equity? I need to transfer equity and remortgage - new loan with Furness Building Society - and have been quoted £250 plus VAT by Furness Building Society's approved conveyancer, Have I been over quoted?
- Me and my former wife and I are are seeking to find an affordable conveyancing solicitor to help me sell in a transfer of equity and remortgage with Furness Building Society. I am aware of the dangers of getting ripped off and there's plenty conveyancing firms who do transfer of equity conveyancing out there...who do I opt for?
- Online research suggests that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I am transferring equity and at the same time remortgaging with Furness Building Society
Information that may be required from your conveyancing solicitor is likely to ask about your Furness Building Society Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Has one of the registered owners passed away? 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?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Please confirm if you are providing any payment for the Transfer of Equity and to whom and disclose any such sums?
Information to consider in supporting 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, the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with you may be in violation of the lease. This could potentially result in 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 valuation of the property at the time of completion 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 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.
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.