LenderPanel.com

Find a Law Firm for your Transfer of Equity approved by
Loughborough Building Society

Questions and answers: Loughborough Building Society transfer of equity

  • I currently have a joint Loughborough Building Society mortgage with my cousin and am investigating the option of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to purchase somewhere with my fiance. The outstanding mortgage is in the region 300k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty involved?
  • I am answering a Loughborough Building Society transfer of equity application and have arrived at the part that asks about debts etc. I do some debts that I have been discharging over a long period, I understand that they no longer remain my credit rating. Do I need to declare these?
  • My existing home loan is with Loughborough Building Society. Can I transfer equity to someone who is not yet 18 years old?
  • What is the process for adding or removing names (transfer of equity) to or from my Loughborough Building Society mortgage account?
  • My former husband are planning to get a lawyer lined up for a refinance with Loughborough Building Society. Transfer of Equity conveyancing is also neededI have used the different comparison based tools and the results are from all over England and Wales. Is it important to appoint a lawyer local to us?
  • What are the average solicitors costs are for a transfer of equity? I'm in the process of remortgaging - moving over to Loughborough Building Society - and have been quoted Three Hundred pounds including VAT by Loughborough Building Society's approved conveyancing solicitor, Is this is a good price or not?
  • Is stamp duty payable when it comes to an transfer of equity with a mortgage with Loughborough Building Society?

Information that may be required from your lawyer is likely to ask regarding your Loughborough Building Society Transfer of Equity

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Is the transfer of equity subject to a court order? If yes please supply a copy

Please let us know of you wish us to draw up a Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?

Please provide the details of anyone to be removed from the title deeds?

Is it the case that 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.

Important warnings to consider in supplemental the above Loughborough Building Society transfer of equity Info :

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

Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in violation of the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 market value of the property at the time of completion 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.


Frequently asked questions relating to Loughborough Building Society transfer of equity