Questions and answers: Mansfield Building Society transfer of equity
- The financial adviser has recommended their conveyancer for my Transfer of Equity plus remortgage with Mansfield Building Society - won’t it be better to just instruct them?
- My friend and I got a joint mortgage with Mansfield Building Society on a flat about a year ago. I am now looking to get a apartment on my own and my friend would like to buy me out. Assuming we can agree an amount where do we go? Would there be any potential issue with Mansfield Building Society with him being responsible for the total loan as opposed to only part of it?
- Mansfield Building Society yesterday agreed I can take over the mortgage on my home. I have applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds in addition?
- Can I transfer the equity held in my property with my Mansfield Building Society home loan?
- I already have a mortgage with Mansfield Building Society and am keeping my current mortgaging but seeking to have have the equity transferred to my sole name so my ex won't be on it any longer. How long do Mansfield Building Society take to process the application?
- Do I need legal representation when doing a transfer of equity where the mortgage is to remain with Mansfield Building Society?
- I am planning on removing a name from a joint mortgage and the Mansfield Building Society require me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Crabtree
lawyer to deal with the transfer of equity? They need to be on the Mansfield Building Society conveyancing panel.
Questions that your conveyancing solicitor is likely to ask regarding your Mansfield Building Society Transfer of Equity
Would you like us to draft you Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Please provide the details of anyone to be removed from the property title?
Who will be responsible for the costs of the Transfer of Equity?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please give the details of anyone to be added to the property title?
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Information to consider in in addition to the above Mansfield 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 Mansfield 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 landlord. If such terms are not adhered to you may be in violation of 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 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 lawyer 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 varies based on the valuation of the property at finalisation of the transfer of equity transaction.
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 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.