Questions and answers: Holmesdale Building Society transfer of equity
- My wife and myself equally own a buy to let. I am a higher rate tax payer. Preferably I wish to do a transfer of equity to her sole name with a view to mitigate tax on rental income. Assuming Holmesdale Building Society are fine with this the legal fees are not prohibitive. What are the implications when we dispose of the property? Would my GGT relief be lost.
- I purchased a property with my brother in 2010 Since purchasing the property, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Holmesdale Building Society mortgage. There is a 30k difference between the value the bank say and what the property would sell for currently. Can you offer any advice?
- I currently have a joint Holmesdale Building Society mortgage with my step-brother and am investigating the feasibility of him taking on the outstanding mortgage and subtracting myself from it, so as to enable me to purchase a property with my soon-to-be-wife. The outstanding mortgage is in the region 200k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty due?
- What should I be budgeting for when it comes to what conveyancing fees are for a transfer of equity? I need to transfer equity and refinance - moving over to Holmesdale Building Society - and have been quoted £250 excluding VAT by Holmesdale Building Society's appointed conveyancing solicitor, Is this is a good price or not?
- What is the process for having a person removed from the deeds to a house if the home loan is with Holmesdale Building Society
- Is it possible to apply to borrow more money from Holmesdale Building Society as part of a Transfer of Equity?
- Am I best advised cancel the direct debit for my mortgage with Holmesdale Building Society once a date for my remortgage and transfer of equity has been set?
Information that may be required from your lawyer may ask regarding your Holmesdale Building Society Transfer of Equity
Please provide the details of anyone to be removed from the property title?
Has one of the registered proprietors passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please list all persons who occupy the property, their respective ages and relationships to you.
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
Please provide the details of those who jointly own the property with you?
Have you approached Holmesdale Building Society to obtain consent to the Transfer of Equity
Important warnings to consider in conjunction with the above Holmesdale Building Society transfer of equity Info :
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, provisions in the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in breach of your covenants under 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 conveyancing solicitor 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 varies based on the valuation 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 conveyancer 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.
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.