Common questions relating to Loughborough Building Society transfer of equity
- I acquired a flat with a friend in 2008 Since then, we have both got married. We are now intending 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?
- Can I transfer the equity held in my property with my Loughborough Building Society home loan?
- I got my Decree Absolute three years ago. I simply never dealt with the change the ownership from the current 'joint' status to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Loughborough Building Society is happy to transfer the property and loan in my name (affordability checks done). Does she need a conveyancer?
- Me and a friend got a joint mortgage with Loughborough Building Society on a apartment a couple of years ago. I am now thinking of purchasing a apartment on my own and my friend would like to buy me out. On the basis that we can settle on an amount what are the next steps? Would there be any potential concerns with Loughborough Building Society with him being on the hook for the total mortgage rather than only half of it?
- What are my options where I am unhappy with the conveyancer who did our transfer of equity conveyancing?
- My decree absolute has gone through as is the consent order. Now I must sort out the transfer of equity at the HMLR and the Loughborough Building Society mortgage. I have called Loughborough Building Society for the transfer of equity forms. What happens next?
- Will I incur any fees for a Transfer of Equity where the existing mortgage is with Loughborough Building Society?
Information that may be required from your conveyancing solicitor could ask regarding your Loughborough Building Society Transfer of Equity
Have you approached Loughborough Building Society to seek consent to the Transfer of Equity
Please give the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Has one of the registered owners died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Who will be responsible for the costs of the Transfer of Equity?
Please inform us if you are making any payment for the Transfer of Equity and to whom and give details of the amount?
If you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Information to consider in supplemental 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 properties
If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not complied with 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 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 is dependent on the valuation of the property at the time of completion of the transfer of equity conveyancing.
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 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.