Questions and answers: Hanley Economic Building Society transfer of equity
- I am completing a Hanley Economic Building Society transfer of equity form and have come to the part that asks about defaults etc. I do some debts that I have been reducing since 2008, in fact they no longer remain my credit rating. Do I need to set these out?
- My Hanley Economic Building Society mortgage is in joint names with ex, he is agreeable to be removed and put the house in my name alone. Hanley Economic Building Society have consented to the transfer of equity to me solely. Will Hanley Economic Building Society write my boss to confirm my salary?
- I jointly own a flat in Ampthill , with a Hanley Economic Building Society loan with my ex husband. Him and his new partner are going to buy me out. We had approval from Hanley Economic Building Society to replace my name with hers. The transfer of equity needs to be completed by a lawyer for Hanley Economic Building Society (supposedly). Can we do the Land Registry formalities?
- I already have a home loan with Hanley Economic Building Society and am maintaining my current mortgaging but seeking to have have the equity transferred to my sole name so my ex will come off the deeds. How long can it take for the application to be processed?
- Me and a friend got a joint mortgage with Hanley Economic Building Society on a apartment about a year ago. I am now thinking of buying a property by myself and my friend would like to buy me out. Assuming we can agree an amount what happens next? Is there likely to be any problem with Hanley Economic Building Society with him being solely liable for the total mortgage rather than only part of it?
- What can I do where I am not happy with the conveyancer who carried out my transfer of equity conveyancing?
- 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 presumably there is a transfer of ownership at HMLR on top?
Examples of information requested in a conveyancing solicitor questionnaire relating to Hanley Economic Building Society Transfer of Equity
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
If 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.
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Please provide the details of anyone who jointly owns the premises with you?
Who will be responsible for the costs of the Transfer of Equity?
Have you approached Hanley Economic Building Society to seek consent to the Transfer of Equity
Caveats to be read in further to the above Hanley Economic Building Society transfer of equity Advice :
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, the lease may have a requirement for notices to be served and that you obtain the consent of 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.
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 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 varies based on the valuation of the property at the time of completion 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 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 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 should not be regarded as 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.