Common questions relating to Furness Building Society transfer of equity
- At what stage do I cover the costs of the Stamp Duty Land Tax payable for the transfer of equity in my property in my sole name which is taking place simultaneously with a switching mortgage via Furness Building Society?
- My partner and I co-own a house in Blaenavon
. Mortgage is with Furness Building Society. I wish to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Is this likely to be easy to so?
- 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 in heated discussion as to who should cover the costs of the transfer of equity. Is this normally shared or is one of us liable for the legal bill?
- My current mortgage is with Furness Building Society. Can I transfer equity to someone who is not yet eighteen years old?
- Me and my former fiance and I are are seeking to find a quality conveyancing solicitor to help me sell in a transfer of equity and remortgage with Furness Building Society. I really don't want to get ripped off and there's lots of conveyancing firms who do transfer of equity conveyancing out there...who do I opt for?
- Have recently separated from my partner of 18 years. I'm now back with my parents again and she wishes to remain in the apartment and pay me off. What portion do I get. Is it 50% of the equity after redeeming the mortgage with Furness Building Society? I assume proper valuations are required but I really need to be confident that I'm getting what I am entitled to
- I acquired a property with a friend five.seven years ago Since purchasing the property, we have both got married. We are now seeking to do a transfer of equity so my name is removed the Furness Building Society mortgage. There is a 30k difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
Questions that your conveyancing solicitor could ask regarding your Furness Building Society Transfer of Equity
Is it the case that one of the registered proprietors died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Would you like us to draft you Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
If you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please provide the details of anyone to be added to the title deeds?
Is the transfer of equity subject to a court order? If yes please supply a copy
Important warnings to consider in conjunction with 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 premises
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach of 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 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 conclusion 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 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 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.