Harpenden Building Society transfer of equity: q and a’s
- I own a flat in Winchelsea
, with a Harpenden Building Society loan with my ex partner. Him and his fiance 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 completed by a conveyancing solicitor for Harpenden Building Society (apparently). Can we do the Land Registry formalities?
- Will I have to pay any charges for a Transfer of Equity where the current mortgage is with Harpenden Building Society?
- Can I apply to request a further advance from Harpenden Building Society as part of a Transfer of Equity?
- Is it possible to transfer the equity held in my property with my Harpenden Building Society mortgage?
- What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Harpenden Building Society?
- My fiance and I have 50:50 shares in a investment property. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity into her name with a view to mitigate tax on rental income. If Harpenden Building Society are fine 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 would I lose my CGT relief.
- My brother and I got a joint mortgage with Harpenden Building Society on a apartment a couple of years ago. I am now thinking of purchasing a property on my own and my friend would like to buy me out. On the basis that we can settle on an amount what are the next steps? Would there be any potential problem with Harpenden Building Society with him being solely liable for the total loan rather than only half of it?
Information that may be required from your conveyancer is likely to ask regarding your Harpenden Building Society Transfer of Equity
Where you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please provide the details of anyone who jointly owns the premises with you?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Is there to be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what figure
Who will be responsible for the costs of the Transfer of Equity?
Please provide the details of anyone to be extracted from the property title?
Information to consider in conjunction with 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, the lease may require that you obtain the consent of the landlord. 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.
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 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 is dependent on the market value of the property at the conclusion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Harpenden Building Society your property may be repossessed.
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.