Common questions relating to Furness Building Society transfer of equity
- My Furness Building Society mortgage we jointly entered into with ex, who has agreed to come off the mortgage and let me have the property. Furness Building Society have consented to the transfer of equity to my individual name. Do Furness Building Society contact my boss to check my salary?
- My father died early last year leaving a unencumbered property to me and my step brother 50:50. Having continues to reside at the premises, there was a clause in the will specifying that the premisescould not be sold for 24 months following her death so he could continue to live there for a specified time frame. He now wishes to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the conventional way to buy my equity?
- Me and a friend got a joint mortgage with Furness Building Society on a apartment about a year ago. I am now looking to get a flat by myself and my friend would like to buy me out. Assuming we can agree a figure where do we go? Would there be any potential concerns with Furness Building Society with him being on the hook for the total mortgage rather than only half of it?
- I am hoping to refinance my maisonette in Timperley
changing from Virgin Money to Furness Building Society. The maisonette is currently in joint names but wish for it to be in my name only when I switch. My husband is OK with this and is willing to transfer equity but neither of us want to get a second lawyer involved.
- What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my Furness Building Society mortgage account?
- When it comes to transfer of equity conveyancing involving refinance with Furness Building Society should I be invoiced value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- Given that we have been 3 years separated I have decided to transfer my interest in the apartment to my husband who is refinancing with Furness Building Society. Can a transfer of equity be completed in less than 28 days?
Questions that your conveyancing solicitor is likely to ask in relation to your Furness Building Society Transfer of Equity
Please provide a copy of your National Insurance Number?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Have you approached Furness Building Society to obtain consent to the Transfer of Equity
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Can you give the details 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 formalised?
Caveats to be read in further to the above Furness Building Society transfer of equity Advice :
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 terms are not adhered to 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 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 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 valuation of the property at the time of completion 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 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 conveyancer 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 does not constitute 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.