Frequently asked questions relating to Mansfield Building Society transfer of equity
- I already have a mortgage with Mansfield Building Society and am maintaining my current mortgaging but applying to have have the equity transferred to my sole name so my former partner will be removed from the mortgage. How long do Mansfield Building Society take to deal with the application?
- My Mansfield Building Society mortgage is in joint names with ex, who has agreed to be removed and put the house in my name alone. Mansfield Building Society will permit the transfer of equity to me solely. Will Mansfield Building Society contact my boss to confirm my salary?
- My fiance and myself equally own a buy to let. I am a top rate tax payer. Preferably I would like to complete a transfer of equity to her sole name in order reduce our tax on rental income. If Mansfield Building Society are content with this the legal fees are not high. What are the implications when we sell? As I would no longer be on the title documents would I lose my CGT relief.
- I am disposing of my share of a house in Woodside to my co-owners husband, they are sticking with Mansfield Building Society being the the existing mortgage company. We are debating as to who should cover the charges for the transfer of equity. Should this be shared or is one party obliged to cover the fees for?
- Can I transfer the equity held in my property with my Mansfield Building Society mortgage?
- Our mortgage broker has recommended their lawyer for our Transfer of Equity plus remortgage with Mansfield Building Society - Surely it’s better to just use them?
- Have recently split up with my ex of 18 years. I'm now back with my mum and dad and she wants to stay in the property and pay me off. What percentage do I get. Is it 50% of the equity after paying off the mortgage with Mansfield Building Society? I assume proper valuations are required but I would like ensure that I'm getting I am not being taken advantage of
Sample of information requested in a conveyancing solicitor questionnaire relating to Mansfield Building Society Transfer of Equity
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 give the details of anyone to be added to the property title?
Has consent been obtained from Mansfield Building Society to the proposed transfer of equity?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please provide the name(s) and addresse(s) of anyone to be removed from the property title?
If 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?
Important warnings to consider in further to the above Mansfield Building Society transfer of equity Questions and Answers :
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 premises
Should the tenure of your property be leasehold, provisions in 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 your covenants under 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 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 conveyancer 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 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 conveyancer 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 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.