Frequently asked questions relating to Hanley Economic Building Society transfer of equity
- My wife and I have equal shares in a buy to let. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity to her sole name with a view to mitigate tax on the letting income. If Hanley Economic Building Society are fine with this the legal fees are inexpensive. What are the implications when we dispose of the property? Would my GGT relief be lost.
- I am trying to find a conveyancer to undertake my transfer of equity. Hanley Economic Building Society have been approached for a remortgage. I thought of asking my financial adviser. I understand he may get a kickback for recommending someone, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Any flaws you see in this way of thinking?
- My decree absolute has gone through as is the consent order. Now I need to sort out the transfer of equity on title deeds and the Hanley Economic Building Society mortgage. I have called Hanley Economic Building Society for the transfer of equity forms. What do I do now?
- Have recently separated from my wife of twenty years. I'm now living with my mum and dad and she wants to remain in the apartment and buy me out. What percentage am I entitled to. Is it half of the equity after paying off the Hanley Economic Building Society home loan? I assume proper valuations are required but I really need to be sure that I'm getting what I am entitled to
- Do I need legal advice when doing a transfer of equity where the home loan is to remain with Hanley Economic Building Society?
- I acquired a property with my brother in 2010 Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name is removed the Hanley Economic Building Society mortgage. There is a significant difference between the value the Hanley Economic Building Society hold and what the property would sell for currently. Can you offer any advice?
- I already have a mortgage with Hanley Economic Building Society and am keeping my existing mortgaging but wish to have have the equity transferred to my name alone so my former husband won't be on it any longer. How long can it take for the application to be processed?
Sample of information requested in a conveyancing solicitor form relating to Hanley Economic Building Society Transfer of Equity
Has one of the registered owners passed away? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Please provide a copy of your National Insurance Number?
Where you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Have you approached Hanley Economic Building Society to obtain consent to the Transfer of Equity
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
General Advice to read in in addition to the above Hanley Economic Building Society transfer of equity information :
Tax and Legal
There are numerous potential 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
If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of the lease. This could trigger 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 conveyancing solicitor 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 time of completion 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 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 lawyer 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.
