Frequently asked questions relating to Manchester Building Society transfer of equity
- I am led to believe we would need at least AP1 and TR1. Is this true?
- What should I be budgeting for when it comes to what legal fees are for a transfer of equity? I need to transfer equity and remortgage - moving over to Manchester Building Society - and have been quoted £250 plus VAT by Manchester Building Society's approved conveyancer, Have I been over quoted?
- I currently have a joint Manchester Building Society mortgage with my step-brother and am looking into the option of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to buy a place with my soon-to-be-wife. The outstanding mortgage is approx 300k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty involved?
- Is it possible to apply to request more money from Manchester Building Society as part of a Transfer of Equity?
- I am transferring my share of a property in Hendon to the other co-owners fiance, they are sticking with Manchester Building Society as the the existing lender. We are haggling as to who should pay the costs of the transfer of equity. Should this be shared or is one party obliged to cover the costs of?
- Have recently split up with my partner of thirty years. I'm now living with my parents again and she wants to stay in the property and pay me off. What portion am I entitled to. Is it 50% of the equity after paying off the Manchester Building Society home loan? I assume proper valuations are necessary but I would like to be sure that I'm getting I am not being walked over
- I am filling out a Manchester Building Society transfer of equity request and have come to the questions that asks about debts etc. I do some debts that I have been reducing since 2008, in fact they no longer remain my credit score. Must I reveal these?
Examples of questions in a conveyancing solicitor form concerning a Manchester Building Society Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Have you approached Manchester Building Society to seek consent to the Transfer of Equity
Is there to be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Important warnings to consider in supplemental the above Manchester Building Society transfer of equity Advice :
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 landlord. 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.
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 conveyancing solicitor 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 valuation of the property at the conclusion of the transfer of equity transaction.
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 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.