Recently asked questions relating to Furness Building Society transfer of equity

• I am trying to find a lawyer to handle my transfer of equity. Furness Building Society are dealing with the remortgage. I thought of asking my mortgage broker. I understand he will likely get a referral fee for suggesting a firm, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Any flaws you see in this way of thinking?
• Can I apply to request a further advance from Furness Building Society as part of a Transfer of Equity?
• My Furness Building Society home loan we jointly entered into with ex, he has agreed to be removed and let me have the property. Furness Building Society have consented to the transfer of equity to my individual name. Will Furness Building Society contact my employer to verify my salary?
• I recently purchased a flat without my partner's name on the ownership paperwork. My conveyancing solicitor claimed it is due to the fact that she is not in the mortgage with Furness Building Society. Is it possible for me to put her name on the deeds?
• I am disposing of my equity in property in Birmingham to my co-owners fiance, they are sticking with Furness Building Society as the the existing mortgage company. We are haggling as to who should cover the costs of the transfer of equity. Should this be shared or is one of us liable for the legal bill?
• Me and a friend got a joint mortgage with Furness Building Society on a house in 2013. I am now looking to get a flat by myself and my friend would like to buy me out. On the basis that we can settle on a price what happens next? Is there likely to be any issue with Furness Building Society with him being responsible for the total mortgage rather than only half of it?
• I am remortgaging my apartment in Friern Barnet does my lawyer have to be on the Furness Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.

Questions that your conveyancing solicitor may ask regarding your Furness Building Society Transfer of Equity

Information to consider in in addition to 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 properties

If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with you may be in breach of your covenants under 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.

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.

Information contained within 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.