Sample questions relating to Holmesdale Building Society transfer of equity
- I am trying to find a conveyancer to deal with my transfer of equity. Holmesdale Building Society are dealing with the refinancing. I considered asking my financial adviser. I understand he may receive a referral fee for suggesting a firm, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Is my logic misguided?
- Holmesdale Building Society have today 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 at the Land Registry in addition?
- Do I need legal advice when doing a transfer of equity where the mortgage is to remain with Holmesdale Building Society?
- Two years ago I purchased a apartment without my partner's name on the ownership paperwork. My lawyer claimed it is due to the fact that she was not in the mortgage with Holmesdale Building Society. Is it possible for me to put her name on the deeds?
- What is the process for adding or subtracting names (transfer of equity) to or from my Holmesdale Building Society mortgage account?
- As things stand I have a joint Holmesdale Building Society mortgage with my step-brother and am looking into the feasibility of him assuming responsibility for the outstanding mortgage and removing myself from it, to enable me to buy somewhere with my fiance. The remaining mortgage is in the region 200k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty due?
- The mortgage broker has suggested using their lawyer for my Transfer of Equity plus remortgage with Holmesdale Building Society - won’t it be easier to just use them?
Sample of questions in a conveyancing solicitor form relating to Holmesdale Building Society Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Has consent been obtained from Holmesdale Building Society to the proposed transfer of equity?
Please give the details of anyone to be removed from the title deeds?
Please provide a copy of your National Insurance Number?
Important warnings to consider in supporting the above Holmesdale Building Society transfer of equity Advice :
Tax and Legal
There are numerous potential 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 titles
If your property is leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in violation of the lease. This could potentially result in 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 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 transaction.
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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Content 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.