Loughborough Building Society transfer of equity: q and a’s

• My ex-wife and I are are seeking to find a responsive conveyancing lawyer to assist in a transfer of equity and remortgage with Loughborough Building Society. I want to avoid being ripped off but with many conveyancing organisations who do transfer of equity conveyancing to pick from...how do I know which one to select?
• I am considering mortgaging my apartment in Dunnington does my lawyer have to be on the Loughborough Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
• Is it sensible to cancel my mortgage payments with Loughborough Building Society once a date for my remortgage and transfer of equity has been agreed?
• Is it possible to apply to borrow a further advance from Loughborough Building Society as part of a Transfer of Equity?
• Have recently separated from my partner of thirty years. I'm now back with my mum and dad and she wishes to stay in the apartment and pay me off. What portion am I entitled to. Is it half of the equity after paying off the mortgage with Loughborough Building Society? I assume proper valuations are required but I would like to be confident that I'm getting I am not being walked over
• Is there such a thing a transfer of equity stamp duty calculator?
• I am transferring my equity in property in Hendon to my co-owners husband, they are sticking with Loughborough Building Society as the the existing lender. We are debating as to who should cover the legal bill for the transfer of equity. Is this normally split or is one party liable for the charges for?

Questions that your lawyer is likely to ask regarding your Loughborough Building Society Transfer of Equity

General Advice to read 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

Should the tenure of your property be leasehold, 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 breach 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 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 conveyancer 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 finalisation 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 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.