Loughborough Building Society transfer of equity: q and a’s
- Is it possible to apply to request a further advance from Loughborough Building Society as part of a Transfer of Equity?
- I purchased a flat with my brother in 2010 Since then, we have both got married. We are now looking to do a transfer of equity so my name comes off the Loughborough Building Society mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- What are my options where I am not happy with the lawyer who undertook our transfer of equity conveyancing?
- I am hoping to remortgage my maisonette in Heathfield
switching from Godiva Mortgages to Loughborough Building Society. The flat is jointly owned but wish for it to be in my name only when I transfer. My husband has verbally consented to this and is happy to sign a form but neither of us want to get a second conveyancing solicitor involved.
- My Loughborough Building Society mortgage is in joint names with ex, he is agreeable to come off the deeds and let me have the property. Loughborough Building Society have consented to the transfer of equity to me solely. Do Loughborough Building Society get in touch with my company to verify my salary?
- How and when do I incur the Stamp Duty Land Tax due for the transfer of equity in my property in my sole name which is taking place simultaneously with a switching mortgage via Loughborough Building Society?
- Have recently separated from my partner of twenty years. I'm now living with my parents again and she wants to stay in the apartment and pay me off. What portion am I entitled to. Is it 50% of the equity after discharging the Loughborough Building Society home loan? I assume proper valuations are required but I really need to be sure that I'm getting I am not being taken advantage of
Questions that your conveyancer may ask regarding your Loughborough Building Society Transfer of Equity
Is it the case that one of the registered owners died? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please give the details of anyone who jointly owns the premises with you?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Who will be responsible for the costs of the Transfer of Equity?
Information to consider in in addition 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
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 freeholder. If such conditions are not complied with you may be in breach of your covenants under the lease. This could trigger 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 lawyer 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 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 conveyancing solicitor 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.