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Are you in need of a Transfer of Equity with a Manchester Building Society mortgage? Failing to check that a lawyer is on the Manchester Building Society list of approved solicitors can put your transfer at risk of delay or failure. Only LenderPanel.com provides a subset of authorised conveyancers for over 130 lenders.

Manchester Building Society transfer of equity: q and a’s

  • Our financial adviser has suggested using their lawyer for my Transfer of Equity plus remortgage with Manchester Building Society - Is it not simpler easier to just instruct them?
  • Will I have to pay any charges for a Transfer of Equity where the current home loan is with Manchester Building Society?
  • I plan to remortgage my apartment in Witham switching from Birmingham Midshires to Manchester Building Society. The maisonette is jointly owned but intend for it to be in my sole name when I switch. My wife has agreed to this and is happy to transfer equity but neither of us want to get a second conveyancing solicitor involved.
  • My friend and I got a joint mortgage with Manchester Building Society on a flat a couple of years ago. I am now thinking of buying a flat on my own and my friend would like to buy me out. Assuming we can agree an amount where do we go? Is there likely to be any concerns with Manchester Building Society with him being on the hook for the total mortgage as opposed to only part of it?
  • I am filling out a Manchester Building Society transfer of equity form and have arrived at the part concerning defaults etc. There are some debts that I have been clearing for a number of years, I understand that they have long since disappeared from my credit records. Do I need to set these out?
  • My existing home loan is with Manchester Building Society. Can I transfer equity to someone less than 18 years old?
  • Is it sensible to cancel the direct debit for my mortgage with Manchester Building Society once a date for my remortgage and transfer of equity has been agreed?

Information that may be required from your conveyancing solicitor may ask in relation to your Manchester Building Society Transfer of Equity

Please provide the name(s) and addresse(s) of anyone to be added to the property title?

Will there be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same

Can you give the details of those who jointly own the premises with you?

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 further fee (beyond the Transfer of Equity fee)?

Is it the case that one of the registered proprietors passed away? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.

Caveats to be read in in addition 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 properties

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 conditions are not strictly observed you may be in breach of 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 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 market value 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 contained within 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.


Frequently asked questions relating to Manchester Building Society transfer of equity