Frequently asked questions relating to Hanley Economic Building Society transfer of equity
- How and when do I incur the Stamp Duty Land Tax payable for the transfer of equity in my home in my sole name which is happening simultaneously with a switching mortgage with Hanley Economic Building Society?
- I got divorced two years ago. I simply never dealt with the transfer ownership from the current 'joint' status to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Hanley Economic Building Society is willing to transfer the full equity in my name (affordability checks done). Does she need a lawyer?
- In 2012 I purchased a house without my partner's name on the title. My conveyancing solicitor claimed it is due to the fact that she is not in the mortgage with Hanley Economic Building Society. I'm wondering is there any way that I can put her name on the deeds?
- Am I best advised stop my mortgage payments with Hanley Economic Building Society as soon as a date for my remortgage and transfer of equity has been set?
- I am planning on removing a name from a joint mortgage and the Hanley Economic Building Society require me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Winchelsea
lawyer to deal with the transfer of equity? They need to be on the Hanley Economic Building Society conveyancing panel.
- I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
- My brother and I got a joint mortgage with Hanley Economic Building Society on a flat about a year ago. I am now looking to get a apartment by myself and my friend would like to buy me out. Assuming we can agree a price what happens next? Is there likely to be any concerns with Hanley Economic Building Society with him being on the hook for the total mortgage rather than only half of it?
Examples of information requested in a conveyancer form relating to Hanley Economic Building Society Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
If you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Is the transfer of equity subject to a court order? If yes please supply a copy
Please list all persons who occupy the property, their respective ages and relationships to you.
Has consent been obtained from Hanley Economic Building Society to the proposed transfer of equity?
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?
General Advice to read in further to the above Hanley Economic 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 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, the lease may require that you have a license to do so from 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 as a result of 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 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 transaction.
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 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 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.