Harpenden Building Society transfer of equity example support desk enquires

• I am under the impression we would need at least AP1 and TR1. Is this true?
• I co-own a property in Heathfield , with a Harpenden Building Society loan with my former husband. Him and his new partner are going to acquire my share. We had approval from Harpenden Building Society to replace my name with hers. The transfer of equity needs to be done by a conveyancer for Harpenden Building Society (apparently). Can we deal with the Land Registry formalities?
• Harpenden Building Society have just agreed I can take over the home loan on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership of the house in addition?
• 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 to mitigate tax on rental income. If Harpenden Building Society are content with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.
• My current mortgage is with Harpenden Building Society. Can I transfer equity to someone under 18 years old?
• Is it possible to transfer the equity held in my property with my Harpenden Building Society mortgage?
• I currently have a joint Harpenden Building Society mortgage with my brother and am investigating the possibility of him taking on the outstanding mortgage and removing myself from it, to enable me to purchase a property with my fiance. The outstanding mortgage is approx 300k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty payable?

Questions that your conveyancer could ask in relation to your Harpenden Building Society Transfer of Equity

General Advice to read in further to the above Harpenden Building Society transfer of equity information :

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 titles

Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in violation 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 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 lawyer 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 varies based on the valuation of the property at the time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Harpenden 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 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.