Recently asked questions relating to Loughborough Building Society transfer of equity
- Me and my former wife and I are in the market for an affordable conveyancing lawyer to help me sell in a transfer of equity and refinance with Loughborough Building Society. I am aware of the chance of getting ripped off but with various conveyancing organisations who do transfer of equity conveyancing to choose from...who do I opt for?
- What are my options where I am not happy with the conveyancer who handled our transfer of equity transaction?
- I already have a home loan with Loughborough Building Society and am keeping my current mortgaging but wish to have it in my name alone so my ex won't be on it any longer. How long does the whole transfer of equity process take?
- My mum died half a year ago leaving a unencumbered house to me and my brother equally. Having continues to reside at the house, there was a provision in the will saying the premisescould not be sold for 2 years following her passing so he could remain there for a specified time frame. He now wishes to remain in the property beyond the specified period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the usual way to purchase my equity?
- Loughborough Building Society yesterday agreed I can take over the home loan on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry on top?
- My ex are looking to get a conveyancer in place for a remortgage with Loughborough Building Society. Transfer of Equity conveyancing is also requiredI have used the different rating based tools and the results are from all over England and Wales. How necessary is it to have a conveyancer local to us?
- I am hoping to refinance my apartment in Heathfield
switching from Yorkshire Building Society to Loughborough Building Society. The home is currently in joint names but intend for it to be in my name only once I remortgage. My wife is OK with this and is happy to transfer equity but neither of us want to get a second conveyancer involved.
Examples of questions in a conveyancing solicitor questionnaire concerning a Loughborough Building Society Transfer of Equity
Would you like us to draw up a Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
Is it the case that one of the registered proprietors passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
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?
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please confirm if you are making any payment for the Transfer of Equity and to whom and give details of the amount?
Caveats to be read in further to 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, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such terms are not adhered to you may be in breach of your covenants under 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 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 varies based on the market value of the property at finalisation 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 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 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.