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

  • What if my application doesn't meet Manchester Building Society lending criteria for a transfer of equity?
  • My partner and I co-own a property in Ampthill . Mortgage is with Manchester Building Society. I wish to transfer full ownership to him with no passing of money but without using a conveyancer. Do you think this should be simple?
  • I understand we would need at least AP1 and TR1. Is this true?
  • Our financial adviser has recommended their conveyancing solicitor for the Transfer of Equity plus remortgage with Manchester Building Society - Is it not simpler better to just use them?
  • How much the typical solicitors costs are for a transfer of equity? I need to transfer equity and remortgage - moving over to Manchester Building Society - and have been quoted £350 including VAT by Manchester Building Society's appointed lawyer, Have I been over quoted?
  • I am disposing of my equity in property in Hendon to my co-owners husband, they are sticking with Manchester Building Society being the the existing mortgage company. We are haggling as to who must pay the fees for the transfer of equity. Is this usually shared or is one of us obliged to cover the legal bill?
  • Am I best advised stop the direct debit for my mortgage with Manchester Building Society as soon as a date for my remortgage and transfer of equity has been set?

Questions that your conveyancer may ask about your Manchester Building Society Transfer of Equity

Who will be responsible for the costs of the Transfer of Equity?

Please give the details of anyone who jointly owns the premises with you?

Please provide a copy of your National Insurance Number?

If you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Please give the details of anyone to be added to the property title?

Is it the case that one of the registered proprietors died? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..

General Advice to read in further to the above Manchester Building Society transfer of equity Questions and Answers :

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 titles

If your property is leasehold, the lease may require that you have a license to do so from the freeholder. If such conditions are not strictly observed you may be in violation of the lease. This could trigger 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 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 finalisation 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 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.


Frequently asked questions relating to Manchester Building Society transfer of equity