Sample questions relating to Hanley Economic Building Society transfer of equity
- I am in the process of removing a name from a joint mortgage and the Hanley Economic Building Society require me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Rye
lawyer to deal with the transfer of equity? They need to be on the Hanley Economic Building Society conveyancing panel.
- I bought a house with a friend six years ago Since then, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Hanley Economic Building Society mortgage. There is a 40k difference between the value the Hanley Economic Building Society hold and what the property would sell for currently. Can you offer any advice?
- Is it possible to apply to request a further advance from Hanley Economic Building Society as part of a Transfer of Equity?
- My mother died last January leaving a mortgage-free bungalow to me and my brother in equal shared. Having continues to reside at the house, there was a provision in the will saying the premisescould not be sold for 24 months after her death so he could remain there for a while. He now says he would like to remain in the premises beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the conventional way to acquire my share?
- Is there such a thing a transfer of equity stamp duty calculator?
- My fiance and myself have equal shares in a buy to let. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity to her sole name in order reduce our tax on the letting income. Assuming Hanley Economic Building Society are fine with this the legal fees are inexpensive. What are the implications when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
- What do I do if I am dissatisfied with the conveyancer who did our transfer of equity conveyancing?
Sample of questions in a conveyancing solicitor form concerning a Hanley Economic Building Society Transfer of Equity
Is there to be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same
If you are adding a person 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.
Can you give the details of anyone who jointly owns the premises with you?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please let us know of you wish us to prepare Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?
Caveats to be read in supporting the above Hanley Economic Building Society transfer of equity Questions and Answers :
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 titles
If your property is 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 conditions are not complied with you may be in breach of your covenants under 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 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 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 varies based on the valuation of the property at the conclusion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Hanley Economic Building Society your property may be repossessed.
Preparing the Transfer of Equity with a Hanley Economic 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 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 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.