Sample questions relating to Manchester Building Society transfer of equity
- My decree absolute has gone through as is the consent order. Now I have to deal with 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 forms. What do I do now?
- Manchester Building Society have today agreed I can take over the home loan on the house. I previously applied for a transfer of equity but is this a transfer of ownership of the title deeds as well?
- As things stand I have a joint Manchester Building Society mortgage with my brother and am investigating the possibility of him taking on the outstanding mortgage and subtracting myself from it, so as to enable me to purchase a property with my fiance. The outstanding mortgage is about 175k, and the property value is about 600k. Is this a transfer of equity? Is land tax due?
- I am transferring my equity in property in Hendon to my co-owners husband, they are reapplying to Manchester Building Society. We are haggling as to who must pay the charges for the transfer of equity. Is this normally split or is one of us obliged to cover the costs of?
- I got my Decree Absolute in 2011. I simply never got around to change the ownership from both our names to just in my name. I am ready to do that and so is she. Transfer-of-equity is needed. Manchester Building Society is happy to transfer the property and loan in my name (affordability checks done). Does my ex need a lawyer?
- When it comes to transfer of equity conveyancing involving a remortgage with Manchester Building Society should I be invoiced value added tax 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
- Is stamp duty payable when it comes to an transfer of equity with a mortgage with Manchester Building Society?
Sample of information requested in a conveyancer form concerning a Manchester Building Society Transfer of Equity
Please provide the details of anyone to be extracted from the property title?
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 incur the additional fee (beyond the Transfer of Equity fee)?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Has consent been obtained from Manchester Building Society to the proposed 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 completed?
Information to consider in conjunction with the above Manchester 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 Manchester Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such restrictions are not strictly observed you may be in breach of 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 varies based on the valuation of the property at the time of completion 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 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.
Information contained within 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.