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Hanley Economic Building Society

Sample questions relating to Hanley Economic Building Society transfer of equity

  • What do I need to do when it comes adding or removing names (transfer of equity) to or from my Hanley Economic Building Society mortgage account?
  • I am planning on removing a name from a joint mortgage and the Hanley Economic Building Society require me to use a conveyancer to carry out the conveyancing. Can you recommend a reasonably priced Sedgefield conveyancer to deal with the transfer of equity? They need to be on the Hanley Economic Building Society conveyancing panel.
  • What do I do if I am unhappy with the conveyancing solicitor who undertook our transfer of equity transaction?
  • At what point do I cover the costs of the Stamp Duty Land Tax chargeable for the transfer of equity in my house in my name alone which is happening simultaneously with a switching mortgage with Hanley Economic Building Society?
  • My partner and myself have 50:50 shares in a investment property. I am a top rate tax payer. Preferably I would like to do a transfer of equity to her sole name in order mitigate tax on the letting income. Assuming Hanley Economic Building Society are content with this the legal fees are inexpensive. What are the implications when we dispose of the property? Would my GGT relief be lost.
  • I am considering remortgaging my house in Timperley does my lawyer have to be on the Hanley Economic Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
  • Do I need legal representation when doing a transfer of equity where the home loan is to remain with Hanley Economic Building Society?

Information that may be required from your conveyancing solicitor is likely to ask in relation to your Hanley Economic Building Society Transfer of Equity

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

Who will be responsible for the costs of the Transfer of Equity?

Has consent been obtained from Hanley Economic Building Society to the proposed transfer of equity?

Can you give the details of anyone who jointly owns the property with you?

We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)

Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Caveats to be read in in addition to the above Hanley Economic 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 Hanley Economic Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, provisions in 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 restrictions are not strictly observed you may be in breach 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 Hanley Economic 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 Hanley Economic 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 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 Hanley Economic Building Society.

Preparing the Transfer of Equity with a Hanley Economic 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 Hanley Economic 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 conveyancing solicitor 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.


Frequently asked questions relating to Hanley Economic Building Society transfer of equity