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Furness Building Society

Frequently asked questions relating to Furness Building Society transfer of equity

  • I am selling my share of a house in Birmingham to my co-owners fiance, they are reapplying to Furness Building Society. We are debating as to who must pay the costs of the transfer of equity. Is this normally shared or is one party liable for the costs of?
  • I am hoping to remortgage my maisonette in Romsey changing from Skipton to Furness Building Society. The home is jointly owned but wish for it to be in my name only as and when I transfer. My former partner has agreed to this and is willing to sign a form but neither of us want to get a second lawyer involved.
  • My Furness Building Society home loan is in joint names with ex, he has agreed to be removed and put the house in my name alone. Furness Building Society will permit the transfer of equity to my individual name. Will Furness Building Society get in touch with my employer to confirm my salary?
  • Me and my former wife and I are searching for a responsive conveyancing solicitor to help me sell in a transfer of equity and refinance with Furness Building Society. I I am fearful of appointing the wrong one and there's lots of conveyancing practices who do transfer of equity conveyancing out there...who do I opt for?
  • Can I transfer the equity held in my property with my Furness Building Society mortgage?
  • I currently have a joint Furness Building Society mortgage with my brother and am looking into the option of him taking on the whole mortgage and removing myself from it, to enable me to purchase somewhere with my partner. The remaining mortgage is about 250k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty due?
  • Have recently separated from my partner of 18 years. I'm now back with my mum and dad and she wishes to stay in the property and pay me off. What percentage 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 would like ensure that I'm getting the best deal

Sample of information requested in a conveyancing solicitor questionnaire relating to Furness Building Society Transfer of Equity

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Please give the details of anyone to be added to the title deeds?

Please list all persons who occupy the property, their respective ages and relationships to you.

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

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Caveats to be read in conjunction with the above Furness Building Society transfer of equity Info :

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

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in violation of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 conveyancer 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 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 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.


Frequently asked questions relating to Furness Building Society transfer of equity