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Mansfield Building Society

Top seven questions relating to Mansfield Building Society transfer of equity

  • My fiance and myself equally own a investment property. I am a top rate tax payer. Ideally I wish to do a transfer of equity to her sole name to mitigate tax on the letting income. Assuming Mansfield Building Society are happy with this the legal fees are not prohibitive. However what happens when we dispose of the property? As I would no longer be on the deeds am I giving up my CGT relief.
  • I plan to remortgage my maisonette in Winchelsea switching from Barnsley BS to Mansfield Building Society. The home is currently in joint names but wish for it to be in my name only once I switch. My former partner has agreed to this and is willing to transfer equity but neither of us want to incur lawyer charges.
  • I am mortgaging my house in Blaenavon does my lawyer have to be on the Mansfield Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
  • Having been four years estranged I have opted to give up my share of the house to my husband who is refinancing with Mansfield Building Society. Could this transfer of equity be completed inside 28 days?
  • Three years ago I purchased a flat without my fiance’s name on the title. My lawyer said it is because she is not in the loan offer with Mansfield Building Society. Is it possible for me to add her name on the deeds?
  • I am looking for a lawyer to undertake my transfer of equity. Mansfield Building Society are dealing with the remortgage. I thought of asking my financial adviser. I am lead to believe he may receive a kickback for suggesting a firm, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Is my logic flawed?
  • Can I transfer the equity held in my property with my Mansfield Building Society mortgage?

Information that may be required from your lawyer may ask regarding your Mansfield Building Society Transfer of Equity

If you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Is it the case that one of the registered owners died? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..

Please confirm where you are providing any payment for the Transfer of Equity and to whom and notify us any such sums?

Have you approached Mansfield Building Society to obtain consent to the Transfer of Equity

Who will be responsible for the costs of the Transfer of Equity?

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Important warnings to consider in supplemental the above Mansfield Building Society transfer of equity Advice :

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, the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to 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 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 is dependent on the valuation of the property at the conclusion 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 conveyancer 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.


Frequently asked questions relating to Mansfield Building Society transfer of equity