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

  • Been reviewing consumer blogs that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I am transferring equity and simultaneously switching mortgage with Loughborough Building Society
  • My dad passed away half a year ago leaving a unencumbered bungalow to me and my brother equally. He has always lived in the house, there was a condition in the will saying the propertycould not be sold for 2 years following her death so he could remain there for a while. He now says he would like to remain in the property beyond the specified 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 mortgage in the usual way to purchase my equity?
  • I jointly own a house in Littleborough , with a Loughborough Building Society loan with my former husband. He and his new partner are going to acquire my share. We had approval from Loughborough Building Society to substitute my name with hers. The transfer of equity has to be completed by a lawyer for Loughborough Building Society (apparently). Is it possible for us to do the Land Registry formalities?
  • My brother and I got a joint mortgage with Loughborough Building Society on a house about a year ago. I am now looking to get a apartment by myself and my friend would like to buy me out. Assuming we can agree a figure where do we go? Would there be any potential concerns with Loughborough Building Society with him being responsible for the total mortgage as opposed to only half of it?
  • Do I need legal advice when doing a transfer of equity where the mortgage is to remain with Loughborough Building Society?
  • My Loughborough Building Society home loan is in joint names with ex, who has agreed to come off the mortgage and let me have the property. Loughborough Building Society have consented to the transfer of equity to me solely. Do Loughborough Building Society contact my boss to verify my salary?
  • I am in the process of remortgaging my property in Rye does my lawyer need to be on the Loughborough Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.

Information that may be required from your conveyancing solicitor may ask in relation to your Loughborough Building Society Transfer of Equity

Has one of the registered proprietors died? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.

Have you approached Loughborough Building Society to seek consent to the Transfer of Equity

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

If you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Would you like us to draw up a Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?

Please let us know where you are making any payment for the Transfer of Equity and to whom and give details of any such sums?

Information to consider in supporting 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 titles

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 violation 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 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 varies based 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Content 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.


Frequently asked questions relating to Loughborough Building Society transfer of equity