Holmesdale Building Society transfer of equity: q and a’s
- I am answering a Holmesdale Building Society transfer of equity request and have come to the questions that asks about defaults etc. I do some debts that I have been reducing over a long period, I understand that they no longer remain my credit score. Do I need to reveal these?
- How and when do I incur stamp duty payable for the transfer of equity in my home in my sole name which is taking place at the same time as a remortgage via Holmesdale Building Society?
- My mother passed away half a year ago leaving a unencumbered semi to me and my step brother in equal shared. Having continues to reside at the property, there was a provision in her will specifying that the propertycould not be sold for three years following her passing so he could continue to live there for a while. He now wants to remain in the house beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the conventional way to acquire my half from me?
- What are the average conveyancing costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Holmesdale Building Society - and have been quoted £250 including VAT by Holmesdale Building Society's appointed lawyer, Is this is a good price or not?
- I purchased a property with my brother six years ago Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name comes off the Holmesdale Building Society mortgage. There is a 30k difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
- I plan to remortgage my home in Littleborough
switching from Accord to Holmesdale Building Society. The flat is jointly owned but intend for it to be in my name only when I switch. My husband has verbally consented to this and is happy to sign a form but neither of us want to incur conveyancer charges.
- I am am in need of a conveyancer to deal with my transfer of equity. Holmesdale Building Society are dealing with the remortgage. I thought of asking my financial adviser. I understand he will likely get a referral fee for recommending someone, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Any flaws you see in this way of thinking?
Questions that your lawyer could ask about your Holmesdale Building Society Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Please inform us if you are making any payment for the Transfer of Equity and to whom and disclose any such sums?
Can you provide the name(s) and addresse(s) of those who jointly own the premises with you?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Please give the details of anyone to be removed from the property title?
Where you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Caveats to be read in in addition to the above Holmesdale 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 Holmesdale Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
If your property is leasehold, provisions in 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 conditions are not complied with 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 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 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 valuation of the property at finalisation of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Holmesdale Building Society.
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 conveyancer 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 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.