Recently asked questions relating to Holmesdale Building Society transfer of equity
- I am hoping to refinance my flat in Timperley
switching from Yorkshire Bank Home Loans to Holmesdale Building Society. The home is currently in joint names but intend for it to be in my sole name when I remortgage. My husband has verbally consented to this and is happy to sign a form but neither of us want to get a second lawyer involved.
- My partner and I co-own a property in Wakefield
. Mortgage is with Holmesdale Building Society. I wish to transfer full ownership to him with no payment of money but without using a conveyancing solicitor. Is this likely to be easy to so?
- I already have a home loan with Holmesdale Building Society and am maintaining my current mortgaging but applying to have have the equity transferred to my sole name so my former partner won't be on it any longer. How long does the whole transfer of equity process take?
- Law month I split up with my partner of twenty years. I'm now living with my mum and dad and she wishes to stay in the property and pay me off. What percentage do I get. Is it half of the equity after redeeming the Holmesdale Building Society home loan? I assume proper valuations are required but I would like ensure that I'm getting what I am entitled to
- My wife and I have equal shares in a investment property. I am a higher rate tax payer. Preferably I would like to complete a transfer of equity into her name to reduce our tax on the letting income. Assuming Holmesdale Building Society are happy with this the legal fees are inexpensive. What are the implications when we sell? Would my GGT relief be lost.
- Will I have to pay any fees for a Transfer of Equity where the existing mortgage is with Holmesdale Building Society?
- Am I best advised cancel my mortgage payments with Holmesdale Building Society once a date for my remortgage and transfer of equity has been agreed?
Questions that your conveyancing solicitor could ask regarding your Holmesdale Building Society Transfer of Equity
Where you are adding a person 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” Questionnaire.
Please provide the name(s) and addresse(s) of anyone who jointly owns the property with you?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Is there to be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what amounts
Is the transfer of equity subject to a court order? If yes please supply a copy
General Advice to read in further to the above Holmesdale Building Society transfer of equity Questions and Answers :
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 Holmesdale Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
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 terms are not adhered to you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to 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 Holmesdale 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 Holmesdale 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 Holmesdale Building Society your property may be repossessed.
Preparing the Transfer of Equity with a Holmesdale 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 Holmesdale 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.