Hanley Economic Building Society transfer of equity: q and a’s
- My father died early last year leaving a loan-free semi to me and my brother 50:50. Having continues to reside at the house, there was a provision in the will specifying that the propertycould not be sold for 24 months following her passing so he could reside there for a prescribed period. 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'd get a valuation then he'd get a home loan in the traditional way to acquire my share?
- What is the process for having someone removed off the title documents to a property if the mortgage is with Hanley Economic Building Society
- Hanley Economic Building Society have just agreed I can take over the mortgage on the flat. I had applied for a transfer of equity but presumably there is a transfer of ownership of the house on top?
- Law month I separated from my ex of 18 years. I'm now living with my mum and dad and she wishes to remain in the apartment and pay me off. What percentage do I get. Is it half of the equity after redeeming the Hanley Economic Building Society home loan? I assume proper valuations are necessary but I would like to be confident that I'm getting the best deal
- I purchased a flat with my cousin in 2009 Since purchasing the property, 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?
- How and when do I incur stamp duty payable for the transfer of equity in my home in my sole name which is taking place at the same time as a refinancing with Hanley Economic Building Society?
- My Hanley Economic Building Society mortgage we jointly entered into with ex, he has agreed to be removed and let me have the property. Hanley Economic Building Society will permit the transfer of equity to me solely. Will Hanley Economic Building Society write my boss to confirm my salary?
Examples of information requested in a lawyer questionnaire relating to Hanley Economic Building Society Transfer of Equity
Please give the details of anyone to be removed from the title deeds?
Please inform us where you are making any payment for the Transfer of Equity and to whom and give details of the amount?
Who will be responsible for the costs of the Transfer of Equity?
Is it the case that one of the registered proprietors died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Can you give the details of those who jointly own the property with you?
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
General Advice to read in supplemental 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 premises
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not complied with 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 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 conclusion of the transfer of equity transaction.
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 conveyancer 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.
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.
