Sample questions relating to Loughborough Building Society transfer of equity
- I acquired a property with a friend 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 Loughborough Building Society mortgage. There is a significant difference between the value the bank say and what the property would sell for currently. Can you offer any advice?
- When it comes to transfer of equity conveyancing involving refinance with Loughborough Building Society should I be paying value added tax on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- What should I be budgeting for when it comes to what legal costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Loughborough Building Society - and have been quoted £350 plus VAT by Loughborough Building Society's approved conveyancing solicitor, Is this is a good price or not?
- I jointly own a property in Rye
, with a Loughborough Building Society mortgage with my ex partner. He and his fiance are going to acquire my share. We had the go ahead from Loughborough Building Society to substitute my name with hers. The transfer of equity needs to be done by a conveyancing solicitor for Loughborough Building Society (supposedly). Can we do the Land Registry formalities?
- What are my options where I am dissatisfied with the lawyer who handled my transfer of equity conveyancing?
- My current home loan is with Loughborough Building Society. Can I transfer equity to someone under 18 years old?
- My divorce has gone through as is the consent order. Now I must address the transfer of equity on title deeds and the Loughborough Building Society mortgage. I have contacted Loughborough Building Society for the transfer of equity forms. What happens next?
Questions that your lawyer is likely to ask about your Loughborough Building Society Transfer of Equity
Please provide a copy of your National Insurance Number?
Is it the case that one of the registered owners died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please give the details of anyone who jointly owns the premises with you?
Please clarify where you are providing any payment for the Transfer of Equity and to whom and disclose any such sums?
Has consent been obtained from Loughborough Building Society to the proposed transfer of equity?
Information to consider in conjunction with the above Loughborough 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 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 conditions are not complied with you may be in violation of the lease. This could potentially result in 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 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 valuation of the property at finalisation of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Loughborough Building Society.
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 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 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.