Manchester Building Society transfer of equity example support desk enquires
- I purchased a house with my brother five.seven years ago Since then, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the Manchester Building Society mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- My brother and I got a joint mortgage with Manchester Building Society on a house a couple of years ago. I am now looking to get a property on my own and my friend would like to buy me out. Once we have agreed an amount where do we go? Would there be any potential issue with Manchester Building Society with him being on the hook for the total loan rather than only half of it?
- Will I incur any charges for a Transfer of Equity where the existing mortgage is with Manchester Building Society?
- My Manchester Building Society mortgage is in joint names with ex, he is agreeable to be removed and put the house in my name alone. Manchester Building Society will permit the transfer of equity to me solely. Do Manchester Building Society call my employer to check my salary?
- As things stand I have a joint Manchester Building Society mortgage with my brother and am looking into the feasibility of him taking on the whole mortgage and extracting myself from it, so as to enable me to purchase a property with my partner. The outstanding mortgage is in the region 250k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax involved?
- I am filling out a Manchester Building Society transfer of equity request and have come to the section concerning debts etc. I do some debts that I have been discharging since 2009, in fact they no longer remain my credit records. Must I set these out?
- My mum died early last year leaving a unencumbered semi to me and my half brother in equal shared. He has always lived in the property, there was a provision in her will saying the propertycould not be sold for 2 years after her passing so he could remain there for a prescribed period. He now says he would like to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the traditional way to acquire my share?
Sample of questions in a conveyancer questionnaire concerning a Manchester Building Society Transfer of Equity
Have you approached Manchester Building Society to obtain consent to the Transfer of Equity
Has one of the registered proprietors died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Who will be responsible for the costs of the Transfer of Equity?
Please give the details of anyone to be added to the property title?
Please provide a copy of your National Insurance Number?
General Advice to read in supplemental 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
If your property is 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 terms are not adhered to you may be in violation 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 situations, 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 the conclusion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Manchester Building Society your property may be repossessed.
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 lawyer 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 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.