Questions and answers: Mansfield Building Society transfer of equity

• I am refinancing my flat in Littleborough does my lawyer need to be on the Mansfield Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
• What is the process for adding or removing names (transfer of equity) to or from my Mansfield Building Society mortgage account?
• Mansfield Building Society have just agreed I can take over the mortgage on the flat. I previously applied for a transfer of equity but is this a transfer of ownership of the title deeds as well?
• I got my Decree Absolute in 2010. Foolishly I never dealt with the change the ownership from the current 'joint' status to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Mansfield Building Society is content to transfer the full equity in my name (financial checks done). Does my ex need a solicitor?
• How and when do I incur stamp duty due for the transfer of equity in my home in my name alone which is taking place simultaneously with a switching mortgage via Mansfield Building Society?
• I intend to remortgage my flat in Sedgefield changing from Birmingham Midshires to Mansfield Building Society. The home is jointly owned but I would like it to be in my name only when I switch. My former partner has verbally consented to this and is happy to sign a form but neither of us want to incur conveyancer fees.
• Given that we have been 4 years estranged I have made the decision to give up my share of our flat to my husband who is refinancing with Mansfield Building Society. Can a transfer of equity be done in 28 days?

Questions that your lawyer may ask regarding your Mansfield Building Society Transfer of Equity

Information to consider in conjunction with the above Mansfield Building Society transfer of equity Info :

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 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 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.

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 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 finalisation of the transfer of equity conveyancing.

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 conveyancer 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.