Frequently asked questions relating to Manchester Building Society transfer of equity

• Do I need legal advice when doing a transfer of equity where the home loan is to remain with Manchester Building Society?
• I am transferring my equity in apartment in Woodside to the other co-owners husband, they are sticking with Manchester Building Society as the the existing mortgage company. We are debating as to who should pay the legal bill for the transfer of equity. Should this be split or is one party liable for the fees for?
• What should I be budgeting for when it comes to what solicitors costs are for a transfer of equity? I need to transfer equity and remortgage - moving over to Manchester Building Society - and have been quoted Three Hundred pounds including VAT by Manchester Building Society's approved conveyancer, Is this a reasonable price?
• I am filling out a Manchester Building Society transfer of equity application and have come to the questions concerning defaults etc. I do some debts that I have been reducing since 2008, I understand that they have long since disappeared from my credit records. Do I need to declare these?
• I am in the process of removing a name from a joint mortgage and the Manchester Building Society need me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Witham conveyancer to deal with the transfer of equity? They need to be on the Manchester Building Society conveyancing panel.
• My wife and I 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 reduce our tax on rental income. Assuming Manchester Building Society are content with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the title documents am I giving up my CGT relief.
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Manchester Building Society?

Questions that your conveyancing solicitor may ask about your Manchester Building Society Transfer of Equity

General Advice to read in conjunction with the above Manchester Building Society transfer of equity Advice :

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 Manchester Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, the lease may require 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.

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 conveyancer 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 varies based on the valuation of the property at finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Manchester Building Society Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor 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.

Information contained within this webpage is for general information and only applies to England and Wales. It does not constitute 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.