Frequently asked questions relating to Manchester Building Society transfer of equity
- What if my application doesn't meet Manchester Building Society lending criteria for a transfer of equity?
- I own a apartment in Miles Platting
, with a Manchester Building Society loan with my former husband. Him and his fiance are going to buy me out. We had the go ahead from Manchester Building Society to replace my name with hers. The transfer of equity needs to be completed by a conveyancer for Manchester Building Society (apparently). Is it possible for us to deal with the Land Registry change?
- I am planning on removing a name from a joint mortgage and the Manchester Building Society require me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Romsey
lawyer to deal with the transfer of equity? They need to be on the Manchester Building Society conveyancing panel.
- When it comes to transfer of equity conveyancing involving refinance 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
- My former wife are seeking to get a lawyer lined up for a remortgage with Manchester Building Society. Transfer of Equity conveyancing is also neededI have used the different comparison based services and the results are from all over the country. Is it important to appoint a conveyancing solicitor local to us?
- As things stand I have a joint Manchester Building Society mortgage with my step-brother and am investigating the option of him assuming responsibility for the outstanding mortgage and subtracting myself from it, so as to enable me to buy somewhere with my fiance. The outstanding mortgage is about 200k, and the property value is approx 600k. Is this a transfer of equity? Is land tax due?
- My mum passed away early last year leaving a unencumbered property to me and my step brother equally. Having continues to reside at the premises, there was a provision in her will saying the propertycould not be sold for 24 months after her passing so he could continue to live there for a while. He now wishes to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the conventional way to buy my equity?
Questions that your conveyancer may ask regarding your Manchester Building Society Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
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 state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Where you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Who will be responsible for the costs of the Transfer of Equity?
Caveats to be read in further to 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 premises
Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in violation 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 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 varies based on the market value of the property at finalisation of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Manchester Building Society.
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 conveyancing solicitor 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 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.
