Mansfield Building Society transfer of equity example support desk enquires
- I am disposing of my equity in apartment in Woodside to the other co-owners fiance, they are reapplying to Mansfield Building Society. We are in heated discussion as to who must cover the costs of the transfer of equity. Is this normally shared or is one of us obliged to cover the costs of?
- I got divorced in 2011. For some reason I never dealt with the change the ownership from both our names to just in my name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Mansfield Building Society is content to transfer the property and loan in my name (affordability checks done). Does my ex need any legal representation?
- My divorce has gone through as is the consent order. Now I need to address the transfer of equity for the property and the Mansfield Building Society mortgage. I have asked Mansfield Building Society for the transfer of equity application. What happens next?
- I am answering a Mansfield Building Society transfer of equity application and have come to the section that asks about defaults etc. I do some debts that I have been discharging over a long period, in fact they no longer remain my credit score. Am I obliged to set these out?
- My wife and I equally own a investment property. I am a top rate tax payer. Ideally I would like to do a transfer of equity to her sole name with a view to mitigate tax on rental income. If Mansfield Building Society are happy with this the legal fees are inexpensive. However what happens when we dispose of the property? Would my GGT relief be lost.
- Can I apply to borrow a further advance from Mansfield Building Society as part of a Transfer of Equity?
- My father passed away last January leaving a mortgage-free semi to me and my step brother 50:50. He has always lived in the premises, there was a provision in her will saying the propertycould not be sold for 2 years following her death so he could remain there for a while. He now wishes to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the usual way to buy my share?
Examples of information requested in a lawyer questionnaire relating to Mansfield Building Society Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Please give the details of anyone to be extracted from the property title?
Please list all persons who occupy the property, their respective ages and relationships to you.
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
Please clarify where you are providing any payment for the Transfer of Equity and to whom and specify any such sums?
Important warnings to consider in supporting the above Mansfield Building Society transfer of equity information :
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 Mansfield Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such terms are not adhered to you may be in violation of 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 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 Mansfield 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 Mansfield 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.
Your property may be repossessed if you do not keep up repayments on your mortgage with Mansfield Building Society.
Preparing the Transfer of Equity with a Mansfield 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 Mansfield 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 lawyer 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.