Recently asked questions relating to Manchester Building Society transfer of equity

• I own a house in Friern Barnet , with a Manchester Building Society loan with my ex husband. Him and his fiance are going to buy me out. We had consent from Manchester Building Society to remove my name with hers. The transfer of equity needs to be done by a conveyancer for Manchester Building Society (supposedly). Can we do the Land Registry formalities?
• What are the average conveyancing charges are for a transfer of equity? I'm in the process of remortgaging - new loan with Manchester Building Society - and have been quoted £350 plus VAT by Manchester Building Society's appointed lawyer, Is this a reasonable price?
• My divorce is through as is the consent order. Now I need to address the transfer of equity on title deeds and the Manchester Building Society home loan. I have contacted Manchester Building Society for the transfer of equity application. What are my next steps?
• My former husband are planning to get a conveyancing solicitor in place for a new mortgage with Manchester Building Society. Transfer of Equity conveyancing is also necessaryI have used the different rating based tools and the results are from all over UK. Do we need to appoint a conveyancing solicitor local to us?
• I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
• As things stand I have a joint Manchester Building Society mortgage with my cousin and am investigating the feasibility of him taking on the whole mortgage and removing myself from it, to enable me to buy somewhere with my soon-to-be-wife. The remaining mortgage is about 300k, and the property value is about 600k. Is this a transfer of equity? Is land tax due?
• I am in the process of refinancing my flat in Miles Platting does my lawyer need to be on the Manchester Building Society Solicitor panel. The conveyancing also involves a transfer of equity.

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

Important warnings to consider in supporting 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 have a license to do so from the freeholder. If such restrictions 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 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 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 market value of the property at finalisation of the transfer of equity transaction.

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 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.