Frequently asked questions relating to Loughborough Building Society transfer of equity
- Me and a friend got a joint mortgage with Loughborough Building Society on a flat about a year ago. I am now thinking of purchasing a flat by myself and my friend would like to buy me out. Once we have agreed an amount what are the next steps? Is there likely to be any issue with Loughborough Building Society with him being responsible for the total loan as opposed to only part of it?
- When it comes to transfer of equity conveyancing involving a remortgage with Loughborough Building Society should I be paying value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- My partner and myself have equal shares in a BTL. I am a higher rate tax payer. Preferably I wish to do a transfer of equity to her sole name in order mitigate tax on rental income. If Loughborough Building Society are happy with this the legal fees are not high. What are the implications when we sell? Would my GGT relief be lost.
- I currently have a joint Loughborough Building Society mortgage with my step-brother and am looking into the option of him assuming responsibility for the whole mortgage and removing myself from it, to enable me to purchase a place with my soon-to-be-wife. The outstanding mortgage is in the region 175k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty involved?
- My ex are looking to get a conveyancer in place for a new mortgage with Loughborough Building Society. Transfer of Equity conveyancing is also neededI have used the different comparison based websites and the results are from all over England and Wales. Is it important to have a lawyer local to us?
- Is it possible to transfer the equity held in my property with my Loughborough Building Society home loan?
- I am transferring my share of a flat in Warwick to my co-owners fiance, they are sticking with Loughborough Building Society being the the existing lender. We are haggling as to who should cover the fees for the transfer of equity. Is this usually split or is one of us liable for the fees for?
Sample of questions in a lawyer questionnaire concerning a Loughborough Building Society Transfer of Equity
Please inform us if you are providing any payment for the Transfer of Equity and to whom and specify any such sums?
Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
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 provide the name(s) and addresse(s) of anyone to be removed from the property title?
Please provide a copy of your National Insurance Number?
If 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” Questionnaire.
General Advice to read in supplemental the above Loughborough Building Society transfer of equity information :
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 premises
Should the tenure of your property be 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 terms are not adhered to you may be in violation of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
Indemnity Insurance
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 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 conveyancing.
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 contained within this webpage is for general information and only applies to England and Wales. It does not constitute 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.
