Questions and answers: Loughborough Building Society transfer of equity
- I am answering a Loughborough Building Society transfer of equity request and have arrived at the part that asks about defaults etc. I do some debts that I have been paying off for a number of years, I understand that they no longer remain my credit score. Must I set these out?
- I co-own a flat in Miles Platting
, with a Loughborough Building Society loan with my ex partner. Him and his fiance are going to acquire my share. We had consent from Loughborough Building Society to remove my name with hers. The transfer of equity needs to be completed by a conveyancer for Loughborough Building Society (supposedly). Is it possible for us to do the Land Registry formalities?
- My Loughborough Building Society mortgage is in joint names with ex, he has agreed to come off the deeds and let me have the property. Loughborough Building Society will permit the transfer of equity to me solely. Do Loughborough Building Society get in touch with my boss to verify my salary?
- Will I incur any fees for a Transfer of Equity where the existing home loan is with Loughborough Building Society?
- My mum died seven months ago leaving a unencumbered bungalow to me and my half brother equally. Having continues to reside at the house, there was a provision in her will saying the premisescould not be sold for three years following her death so he could continue to live there for a prescribed period. He now wants to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the traditional way to purchase my share?
- I already have a mortgage with Loughborough Building Society and am retaining my current mortgaging but seeking to have it in my sole name so my ex will no longer be on the title. How long does the whole transfer of equity process take?
- Am I best advised cancel the direct debit for my mortgage with Loughborough Building Society once a date for my remortgage and transfer of equity has been agreed?
Information that may be required from your conveyancer is likely to ask about your Loughborough Building Society Transfer of Equity
Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please provide the details of anyone to be removed from the title deeds?
Where 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” Form.
Who will be responsible for the costs of the Transfer of Equity?
Please provide the details of anyone to be added to the property title?
Caveats to be read in in addition to the above Loughborough Building Society transfer of equity information :
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 properties
If your property is 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 landlord. If such conditions are not strictly observed 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 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 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 valuation of the property at the time of completion of the transfer of equity transaction.
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 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.