Recently asked questions relating to Mansfield Building Society transfer of equity
- My friend and I got a joint mortgage with Mansfield Building Society on a property in 2013. I am now thinking of purchasing a house by myself and my friend would like to buy me out. Assuming we can agree a figure what happens next? Would there be any potential concerns with Mansfield Building Society with him being on the hook for the total loan as opposed to only part of it?
- I am planning on removing a name from a joint mortgage and the Mansfield Building Society need me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Littleborough
conveyancer to deal with the transfer of equity? They need to be on the Mansfield Building Society conveyancing panel.
- Can I apply to borrow a further advance from Mansfield Building Society as part of a Transfer of Equity?
- My dad died early last year leaving a unencumbered semi to me and my step brother 50:50. Having continues to reside at the property, there was a condition in her will saying the housecould not be sold for three years after her passing so he could remain there for a specified time frame. He now wants to remain in the house beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the conventional way to acquire my share?
- I currently have a joint Mansfield Building Society mortgage with my cousin and am investigating the possibility of him assuming responsibility for the outstanding mortgage and removing myself from it, to enable me to buy somewhere with my partner. The outstanding mortgage is about 200k, and the property value is about 600k. Is this a transfer of equity? Is land tax due?
- How much the typical legal costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Mansfield Building Society - and have been quoted Four Hundred pounds excluding VAT by Mansfield Building Society's appointed lawyer, Have I been over quoted?
- My existing home loan is with Mansfield Building Society. Can I transfer equity to someone under 18 years old?
Questions that your conveyancing solicitor is likely to ask about your Mansfield Building Society Transfer of Equity
If you are adding someone 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” Form.
Please provide the name(s) and addresse(s) of anyone who jointly owns the property with you?
Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
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)?
Please provide the details of anyone to be removed from the property title?
Please list all persons who occupy the property, their respective ages and relationships to you.
Caveats to be read in further to the above Mansfield Building Society transfer of equity Info :
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 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 your covenants under the lease. This could trigger 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 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 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 Mansfield Building Society your property may be repossessed.
Preparing the Transfer of Equity with a Mansfield Building Society Mortgage
When it comes to preparing the the Land Registry documents your conveyancing solicitor 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.
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.