Examples of recent questions relating to Loughborough Building Society transfer of equity

• Can I transfer the equity held in my property with my Loughborough Building Society home loan?
• I am led to believe we would need at least AP1 and TR1. Is this true?
• Is it possible to apply to request more money from Loughborough Building Society as part of a Transfer of Equity?
• I am filling out a Loughborough Building Society transfer of equity application and have come to the part regarding debts etc. There are some debts that I have been clearing for a number of years, in fact they no longer remain my credit score. Do I need to set these out?
• Loughborough Building Society have just agreed I can take over the mortgage on the house. I had applied for a transfer of equity but is this a transfer of ownership of the house in addition?
• My friend and I got a joint mortgage with Loughborough Building Society on a house about a year ago. I am now looking to get a flat by myself and my friend would like to buy me out. Once we have agreed a price what are the next steps? Would there be any potential problem with Loughborough Building Society with him being solely liable for the total mortgage as opposed to only half of it?
• My partner and myself have equal shares in a buy to let. I am a top rate tax payer. Ideally I wish to complete a transfer of equity to her sole name to reduce our tax on the letting income. If Loughborough Building Society are content with this the legal fees are not high. However what happens when we sell? As I would no longer be on the deeds am I giving up my CGT relief.

Information that may be required from your conveyancing solicitor is likely to ask regarding your Loughborough Building Society Transfer of Equity

Information to consider in supporting 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 restrictions 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 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 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.

Preparing the Transfer of Equity with a Loughborough 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 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 lawyer 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.