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Furness Building Society

Sample questions relating to Furness Building Society transfer of equity

  • I am disposing of my equity in property in Hendon to the other co-owners fiance, they are reapplying to Furness Building Society. We are haggling as to who should cover the costs of the transfer of equity. Is this usually shared or is one party liable for the costs of?
  • I plan to remortgage my home in Timperley moving from Accord to Furness Building Society. The maisonette is currently in joint names but intend for it to be in my sole name when I transfer. My former partner has verbally consented to this and is willing to sign a form but neither of us want to get a second conveyancer involved.
  • My mother passed away last March leaving a unencumbered property to me and my brother in equal shared. Having continues to reside at the property, there was a clause in her will saying the housecould not be sold for 24 months following her death so he could remain there for a prescribed period. He now says he would like to remain in the house beyond the specified period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the conventional way to acquire my equity?
  • I got divorced in 2010. Foolishly I never dealt with the change the ownership from the current 'joint' status to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Furness Building Society is willing to transfer the property and loan in my name (affordability checks done). Does she need a conveyancer?
  • Am I best advised cancel my mortgage payments with Furness Building Society as soon as a date for my remortgage and transfer of equity has been set?
  • Can you tell me how to have a person removed off the deeds to a property where the home loan is with Furness Building Society
  • What if my application doesn't meet Furness Building Society lending criteria for a transfer of equity?

Information that may be required from your lawyer could ask about your Furness Building Society Transfer of Equity

Has consent been obtained from Furness Building Society to the proposed transfer of equity?

Please give the name(s) and addresse(s) of anyone to be added to the property title?

We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)

Can you give the name(s) and addresse(s) of anyone who jointly owns the premises with you?

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?

Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Caveats to be read in supporting the above Furness Building Society transfer of equity information :

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

Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

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 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 market value of the property at finalisation 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 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 provided on this webpage is for general information and only applies to England and Wales. It should not be regarded as 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.


Frequently asked questions relating to Furness Building Society transfer of equity