Frequently asked questions relating to Manchester Building Society transfer of equity
- I am answering a Manchester Building Society transfer of equity form and have arrived at the questions that asks about defaults etc. I do some debts that I have been paying off over a long period, I understand that they no longer remain my credit records. Am I obliged to declare these?
- 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 outstanding mortgage and removing myself from it, so as to enable me to buy a property with my partner. The remaining mortgage is in the region 200k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty payable?
- I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
- My partner and I jointly own a property in Witham
. Mortgage is with Manchester Building Society. I want to transfer full ownership to him with no exchange of money but without using a conveyancer. Is this likely to be simple?
- My former husband are seeking to get a conveyancing solicitor lined up for a new mortgage with Manchester Building Society. Transfer of Equity conveyancing is also requiredI have used the different comparison based tools and the results are from all over UK. Do we need to instruct a lawyer local to us?
- I am am in need of a lawyer to handle my transfer of equity. Manchester Building Society are dealing with the remortgage. I thought of asking my financial adviser. I understand he may get a kickback for suggesting someone, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic correct?
- I intend to refinance my home in Winchelsea
switching from Halifax to Manchester Building Society. The apartment is jointly owned but I would like it to be in my sole name when I remortgage. My husband has verbally consented to this and is happy to transfer equity but neither of us want to incur conveyancing solicitor fees.
Examples of information requested in a lawyer form relating to Manchester Building Society Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Has consent been obtained from Manchester Building Society to the proposed transfer of equity?
Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Who will be responsible for the costs of the Transfer of Equity?
Caveats to be read in supplemental the above Manchester Building Society transfer of equity Info :
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 properties
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 conditions are not strictly observed you may be in breach of your covenants under 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 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 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 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 conveyancing solicitor 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.