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Questions and answers: Loughborough Building Society transfer of equity

  • I am trying to find a conveyancing solicitor to deal with my transfer of equity. Loughborough Building Society are dealing with the refinancing. I considered asking my financial adviser. I am lead to believe he will likely get a referral fee for recommending a firm, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic misguided?
  • My Loughborough Building Society home loan is in joint names with ex, who has agreed to be removed and let me have the property. Loughborough Building Society will permit the transfer of equity to my individual name. Will Loughborough Building Society write my employer to confirm my salary?
  • What if my application doesn't meet Loughborough Building Society lending criteria for a transfer of equity?
  • Online research suggests that solicitors are more expensive than licensed conveyancers when it comes to transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor where I am transferring equity and simultaneously switching mortgage with Loughborough Building Society
  • My father passed away half a year ago leaving a unencumbered property to me and my brother in equal shared. He has always lived in the house, there was a condition in the will saying the housecould not be sold for 2 years after her passing so he could continue to live there for a prescribed period. He now says he would like to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the usual way to buy my equity?
  • Can I apply to borrow a further advance from Loughborough Building Society as part of a Transfer of Equity?
  • Taking into account that we have been three years apart I have decided to give up my interest in the flat to my husband who is re-mortgaging with Loughborough Building Society. Could this transfer of equity be done in less than one month?

Questions that your conveyancing solicitor may ask regarding your Loughborough Building Society Transfer of Equity

Please confirm where you are making any payment for the Transfer of Equity and to whom and specify the amount?

Please list all persons who occupy the property, their respective ages and relationships to you.

Please give the details of anyone to be added to the title deeds?

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?

Can you give the details of anyone who jointly owns the premises with you?

Have you approached Loughborough Building Society to obtain consent to the Transfer of Equity

Caveats to be read in further to the above Loughborough 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 Loughborough Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

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 breach of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to 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 lawyer will check with Loughborough 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 Loughborough 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 time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Loughborough Building Society your property may be repossessed.

Preparing the Transfer of Equity with a Loughborough 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 Loughborough 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.

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.


Frequently asked questions relating to Loughborough Building Society transfer of equity