Top seven questions relating to Harpenden Building Society transfer of equity
- My former wife are looking to get a conveyancing solicitor lined up for a remortgage with Harpenden Building Society. Transfer of Equity conveyancing is also necessaryI have used the different comparison based websites and the results are from all over England and Wales. Do we need to have a conveyancer local to us?
- I am filling out a Harpenden Building Society transfer of equity application and have come to the part concerning debts etc. There are some debts that I have been clearing over a long period, in fact they have long since disappeared from my credit records. Must I set these out?
- I currently have a joint Harpenden Building Society mortgage with my brother and am looking into the option of him assuming responsibility for the outstanding mortgage and subtracting myself from it, to enable me to purchase somewhere with my partner. The outstanding mortgage is about 250k, and the property value is about 500k. Is this a transfer of equity? Is land tax payable?
- Can I apply to request more money from Harpenden Building Society as part of a Transfer of Equity?
- What do I do if I am unhappy with the conveyancer who undertook my transfer of equity conveyancing?
- What is the process for having a person removed off the title documents to a house if the home loan is with Harpenden Building Society
- I am disposing of my equity in house in Warwick to my co-owners fiance, they are sticking with Harpenden Building Society being the the existing lender. We are in heated discussion as to who must pay the charges for the transfer of equity. Is this normally split or is one of us obliged to cover the costs of?
Sample of information requested in a conveyancing solicitor questionnaire concerning a Harpenden Building Society Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?
Who will be responsible for the costs of the Transfer of Equity?
Please provide the name(s) and addresse(s) of those who jointly own the premises with you?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Where you 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?
Information to consider in further to the above Harpenden 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 Harpenden Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 conveyancing solicitor will check with Harpenden 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 Harpenden 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 time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Harpenden Building Society.
Preparing the Transfer of Equity with a Harpenden 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 Harpenden 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 contained within 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.