Common questions relating to Furness Building Society transfer of equity
- Is it possible to apply to request more money from Furness Building Society as part of a Transfer of Equity?
- I purchased a flat with my brother in 2008 Since then, we have both got married. We are now seeking to do a transfer of equity so my name comes off the Furness Building Society mortgage. There is a meaningful difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
- My Furness Building Society home loan is in joint names with ex, he is agreeable to be removed and put the house in my name alone. Furness Building Society will permit the transfer of equity to me solely. Will Furness Building Society contact my boss to confirm my salary?
- Me and a friend got a joint mortgage with Furness Building Society on a property about a year ago. I am now looking to get a property by myself and my friend would like to buy me out. Once we have agreed an amount where do we go? Would there be any potential issue with Furness Building Society with him being on the hook for the total mortgage rather than only part of it?
- How much the typical legal fees are for a transfer of equity? I'm in the process of remortgaging - new loan with Furness Building Society - and have been quoted £250 plus VAT by Furness Building Society's appointed lawyer, Is this is a good price or not?
- Is it sensible to cancel the direct debit for my mortgage with Furness Building Society once a date for my remortgage and transfer of equity has been agreed?
- I co-own a property in Witham
, with a Furness Building Society mortgage with my ex partner. He and his fiance are going to acquire my share. We had approval from Furness Building Society to substitute my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Furness Building Society (supposedly). Can we do the Land Registry change?
Questions that your conveyancer could ask regarding your Furness Building Society Transfer of Equity
Please provide the details of anyone to be added to the property title?
Where you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please let us know of you wish us to draw up a Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Who will be responsible for the costs of the Transfer of Equity?
Information to consider in conjunction with the above Furness Building Society transfer of equity information :
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 premises
If your property is leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such terms are not adhered to you may be in breach of your covenants under the lease. This could trigger 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 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 valuation of the property at finalisation of the transfer of equity transaction.
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 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.