Ipswich Building Society transfer of equity: q and a’s
- I am filling out a Ipswich Building Society transfer of equity application and have come to the part that asks about debts etc. There are some debts that I have been reducing for a number of years, I understand that they no longer remain my credit score. Am I obliged to declare these?
- My fiance and I have 50:50 shares in a buy to let. I am a top rate tax payer. Ideally I would like to complete a transfer of equity into her name to reduce our tax on the letting income. If Ipswich Building Society are fine with this the legal fees are not prohibitive. However what happens when we sell? As I would no longer be on the deeds am I giving up my CGT relief.
- I currently have a joint Ipswich Building Society mortgage with my brother and am investigating the option of him assuming responsibility for the outstanding mortgage and subtracting myself from it, to enable me to purchase somewhere with my fiance. The remaining mortgage is about 250k, and the property value is in the region 500k. Is this a transfer of equity? Is stamp duty involved?
- How much the typical legal charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Ipswich Building Society - and have been quoted £250 excluding VAT by Ipswich Building Society's appointed lawyer, Is this is a good price or not?
- My former husband are looking to get a lawyer in place for a refinance with Ipswich Building Society. Transfer of Equity conveyancing is also neededI have used the different rating based tools and the results are from all over UK. Is it important to appoint a conveyancing solicitor local to us?
- What is the process for adding or subtracting names (transfer of equity) to or from my Ipswich Building Society mortgage account?
- My current mortgage is with Ipswich Building Society. Can I transfer equity to someone less than eighteen years old?
Examples of questions in a lawyer questionnaire concerning a Ipswich Building Society Transfer of Equity
Is it the case that one of the registered owners died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Who will be responsible for the costs of the 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 clarify if you are making any payment for the Transfer of Equity and to whom and give details of any such sums?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please give the name(s) and addresse(s) of anyone to be removed from the title deeds?
Information to consider in further to the above Ipswich 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 Ipswich Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed 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 Ipswich 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 Ipswich 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 finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Ipswich Building Society your property may be repossessed.
Preparing the Transfer of Equity with a Ipswich Building Society Mortgage
When it comes to preparing the the Land Registry documents your lawyer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.
If Ipswich 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 provided 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.