Sample questions relating to Loughborough Building Society transfer of equity
- I plan to remortgage my apartment in Romsey
switching from Virgin Money to Loughborough Building Society. The home is jointly owned but I would like it to be in my name only once I transfer. My wife is OK with this and is happy to transfer equity but neither of us want to incur lawyer charges.
- At what stage do I incur the Stamp Duty Land Tax chargeable for the transfer of equity in my house in my name alone which is happening at the same time as a remortgage with Loughborough Building Society?
- I am disposing of my share of a property in Hendon to the other co-owners husband, they are sticking with Loughborough Building Society as the the existing mortgage company. We are haggling as to who should pay the fees for the transfer of equity. Is this normally split or is one party liable for the legal bill?
- My partner and myself have equal shares in a buy to let. I am a top rate tax payer. Ideally I wish to do a transfer of equity to her sole name to mitigate tax on rental income. Assuming Loughborough Building Society are fine with this the legal fees are not prohibitive. However what happens when we sell? As I would no longer be on the deeds would I lose my CGT relief.
- I already have a home loan with Loughborough Building Society and am maintaining my current mortgaging but applying to have it in my name alone so my ex will be removed from the mortgage. How long can it take for the application to be processed?
- What are my options where I am unhappy with the lawyer who did our transfer of equity transaction?
- I am searching for a dependable conveyancing lawyer to assist in a transfer of equity and refinance with Loughborough Building Society. I really don't want to get ripped off but with so many conveyancing solicitors who do transfer of equity conveyancing to choose from...who's the best?
Examples of questions in a lawyer questionnaire concerning a Loughborough Building Society Transfer of Equity
Have you approached Loughborough Building Society to seek consent to the Transfer of Equity
Is there to be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Who will be responsible for the costs of the Transfer of Equity?
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 provide the details of anyone to be added to the property title?
Information to consider in conjunction with 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 titles
If your property is leasehold, the lease may require 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 trigger 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 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 market value of the property at finalisation 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 lawyer 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.