Common questions relating to Manchester Building Society transfer of equity
- My dad died last January leaving a unencumbered house to me and my half brother 50:50. Having continues to reside at the property, there was a clause in her will saying the housecould not be sold for three years following her death so he could reside there for a prescribed period. He now says he would like to remain in the house beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the usual way to purchase my equity?
- I am hoping to remortgage my flat in Miles Platting
switching from Lloyds TSB to Manchester Building Society. The flat is jointly owned but intend for it to be in my name only when I remortgage. My husband has verbally consented to this and is happy to sign a form but neither of us want to get a second lawyer involved.
- Can I apply to request a further advance from Manchester Building Society as part of a Transfer of Equity?
- At what point do I incur stamp duty chargeable for the transfer of equity in my property in my sole name which is taking place at the same time as a remortgage with Manchester Building Society?
- Me and a friend got a joint mortgage with Manchester Building Society on a flat about a year ago. I am now looking to get a property by myself and my friend would like to buy me out. Once we have agreed a figure what are the next steps? Would there be any potential issue with Manchester Building Society with him being solely liable for the total mortgage as opposed to only half of it?
- I am in the process of refinancing my apartment in Crabtree
does my lawyer need to be on the Manchester Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
- When it comes to transfer of equity conveyancing involving a remortgage with Manchester Building Society should I be invoiced VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
Questions that your conveyancer could ask in relation to your Manchester Building Society Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please provide the details of anyone to be removed from the property title?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Can you give the name(s) and addresse(s) of those who jointly own the property with you?
Information to consider in in addition to the above Manchester Building Society transfer of equity Questions and Answers :
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 Manchester Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to 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 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 lawyer will check with Manchester 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 Manchester 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 conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Manchester Building Society.
Preparing the Transfer of Equity with a Manchester 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 Manchester 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.
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.