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Hanley Economic Building Society

Common questions relating to Hanley Economic Building Society transfer of equity

  • How and when do I incur stamp duty payable for the transfer of equity in my home in my sole name which is happening simultaneously with a refinancing via Hanley Economic Building Society?
  • My wife and myself jointly own a BTL. I am a top rate tax payer. Ideally I would like to complete a transfer of equity into her name in order mitigate tax on rental income. Assuming Hanley Economic Building Society are happy with this the legal fees are inexpensive. What are the implications when we sell? Would my GGT relief be lost.
  • Me and a friend got a joint mortgage with Hanley Economic Building Society on a house about a year ago. I am now looking to get a house by myself and my friend would like to buy me out. On the basis that we can settle on a figure where do we go? Is there likely to be any concerns with Hanley Economic Building Society with him being solely liable for the total loan rather than only half of it?
  • I am filling out a Hanley Economic Building Society transfer of equity form and have come to the section that asks about defaults etc. There are some debts that I have been clearing for a number of years, in fact they no longer remain my credit rating. Must I set these out?
  • Hanley Economic Building Society have today agreed I can take over the mortgage on my home. I have applied for a transfer of equity but is this a transfer of ownership of the title deeds on top?
  • Our mortgage broker has suggested using their conveyancing solicitor for my Transfer of Equity plus remortgage with Hanley Economic Building Society - Surely it’s better to just use them?
  • My current mortgage is with Hanley Economic Building Society. Can I transfer equity to someone less than eighteen years old?

Sample of information requested in a conveyancing solicitor questionnaire concerning a Hanley Economic Building Society Transfer of Equity

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

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

Have you approached Hanley Economic Building Society to seek consent to the Transfer of Equity

Please inform us where you are providing any payment for the Transfer of Equity and to whom and give details of the amount?

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Please give the details of anyone to be removed from the property title?

Information to consider in in addition to the above Hanley Economic Building Society transfer of equity Info :

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 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 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.
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 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 conveyancer 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.


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