Questions and answers: Hanley Economic Building Society transfer of equity

• I am disposing of my share of a property in Birmingham to my co-owners fiance, they are reapplying to Hanley Economic Building Society. We are debating as to who must cover the costs of the transfer of equity. Is this normally split or is one party obliged to cover the legal bill?
• My friend and I got a joint mortgage with Hanley Economic Building Society on a flat a couple of years ago. I am now thinking of buying a house on my own and my friend would like to buy me out. Assuming we can agree a figure what happens next? Would there be any potential issue with Hanley Economic Building Society with him being responsible for the total loan as opposed to only half of it?
• How and when do I cover the costs of stamp duty chargeable for the transfer of equity in my home in my sole name which is happening simultaneously with a remortgage via Hanley Economic Building Society?
• My partner and myself equally own a buy to let. I am a higher rate tax payer. Preferably I would like to complete a transfer of equity to her sole name to mitigate tax on rental income. If Hanley Economic Building Society are happy with this the legal fees are not high. What are the implications when we sell? As I would no longer be on the deeds am I giving up my CGT relief.
• Is there such a thing a transfer of equity stamp duty calculator?
• I am refinancing my home in Blaenavon does my lawyer have to be on the Hanley Economic Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
• I understand we would need at least AP1 and Transfer Deed. Is this true?

Sample of questions in a conveyancer form relating to Hanley Economic Building Society Transfer of Equity

Information to consider in supporting the above Hanley Economic 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 Hanley Economic Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

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 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 market value of the property at the conclusion of the transfer of equity conveyancing.

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 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.