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Harpenden Building Society

Common questions relating to Harpenden Building Society transfer of equity

  • What legal advice do I need when doing a transfer of equity where the home loan is to remain with Harpenden Building Society?
  • My decree absolute is through as is the consent order. Now I must deal with the transfer of equity for the property and the Harpenden Building Society home loan. I have contacted Harpenden Building Society for the transfer of equity forms. What do I do now?
  • What do I need to do when it comes adding or removing names (transfer of equity) to or from my Harpenden Building Society mortgage account?
  • I purchased a house with a friend six years ago Since then, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Harpenden Building Society mortgage. There is a 40k difference between the value the Harpenden Building Society say and what the property would sell for currently. Can you offer any advice?
  • I already have a home loan with Harpenden Building Society and am retaining my existing mortgaging but wish to have have the equity transferred to my name only so my former partner will no longer be on the mortgage. How long do Harpenden Building Society take to process the application?
  • My mortgage broker has suggested using their conveyancer for the Transfer of Equity plus remortgage with Harpenden Building Society - won’t it be better to just use them?
  • I am disposing of my equity in flat in Woodside to my co-owners husband, they are reapplying to Harpenden Building Society. We are in heated discussion as to who must cover the costs of the transfer of equity. Should this be shared or is one of us obliged to cover the charges for?

Questions that your lawyer is likely to ask in relation to your Harpenden Building Society Transfer of Equity

Please let us know if you are providing any payment for the Transfer of Equity and to whom and notify us any such sums?

Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?

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?

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

Who will be responsible for the costs of the 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?

Information to consider in in addition 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 properties

If your property is 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 conditions are not complied with you may be in breach of 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 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 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 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 conveyancer 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.


Frequently asked questions relating to Harpenden Building Society transfer of equity