Questions and answers: Harpenden Building Society transfer of equity
- At what point do I pay the Stamp Duty Land Tax due for the transfer of equity in my home in my sole name which is happening at the same time as a switching mortgage via Harpenden Building Society?
- Our financial adviser has recommended their conveyancer for our Transfer of Equity plus remortgage with Harpenden Building Society - Is it not simpler easier to just use them?
- My father died seven months ago leaving a mortgage-free property to me and my step brother in equal shared. Having continues to reside at the premises, there was a condition in the will saying the propertycould not be sold for 2 years after her passing so he could continue to live there for a prescribed period. He now wishes to remain in the house beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the traditional way to buy my half from me?
- My divorce has gone through as is the consent order. Now I have to address 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 application. What do I do now?
- I already have a mortgage with Harpenden Building Society and am retaining my current mortgaging but seeking to have have the equity transferred to my name only so my former partner won't be on it any longer. How long can it take for the paperwork to be processed?
- How much the typical legal costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Harpenden Building Society - and have been quoted Four Hundred pounds excluding VAT by Harpenden Building Society's approved conveyancer, Have I been over quoted?
- My Harpenden Building Society home loan is in joint names with ex, who is agreeable to come off the mortgage and let me have the property. Harpenden Building Society have consented to the transfer of equity to me solely. Do Harpenden Building Society contact my boss to verify my salary?
Questions that your conveyancer could ask regarding your Harpenden Building Society Transfer of Equity
Will there be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what amounts
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please provide the details of those who jointly own the property with you?
If you are adding someone 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 let us know of you wish us to prepare Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Important warnings to consider in in addition 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 titles
Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the landlord. 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.
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 conveyancer 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.
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 lawyer 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 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.