Sample questions relating to Manchester Building Society transfer of equity
- Have recently separated from my wife of twenty years. I'm now back with my mum and dad and she wants to remain in the apartment and buy me out. What percentage do I get. Is it half of the equity after paying off the Manchester Building Society home loan? I assume proper valuations are required but I really need to be sure that I'm getting what I am entitled to
- My Manchester Building Society mortgage is in joint names with ex, who has agreed to come off the mortgage and put the house in my name alone. Manchester Building Society have consented to the transfer of equity to my individual name. Will Manchester Building Society contact my employer to confirm my salary?
- I am selling my equity in house in Hendon to my co-owners husband, they are reapplying to Manchester Building Society. We are debating as to who should cover the costs of the transfer of equity. Is this normally shared or is one party obliged to cover the fees for?
- My current mortgage is with Manchester Building Society. Can I transfer equity to someone under 18 years old?
- What are the average solicitors 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 excluding VAT by Manchester Building Society's approved lawyer, Is this a reasonable price?
- Last year bought a property without my partner's name on the title documents. My conveyancer advised it is because she is not in the loan offer with Manchester Building Society. Is it possible for me to add her name on the documents at HM Land Registry?
- My wife and myself jointly own a buy to let. I am a top rate tax payer. Preferably I would like to complete a transfer of equity to her sole name with a view to mitigate tax on rental income. Assuming Manchester Building Society are happy with this the legal fees are inexpensive. What are the implications when we sell? As I would no longer be on the title documents would I lose my CGT relief.
Examples of questions in a conveyancer form relating to Manchester Building Society Transfer of Equity
Please provide the details of anyone to be added to the property title?
Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?
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
Can you provide the name(s) and addresse(s) of anyone who jointly owns the premises with you?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Information to consider in in addition to the above Manchester Building Society transfer of equity information :
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 obtain the consent of the landlord. If such terms are not adhered to you may be in breach 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 pursuant to 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.
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 lawyer 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 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.