Market Harborough Building Society transfer of equity: q and a’s
- My father passed away seven months ago leaving a loan-free house to me and my half brother 50:50. He has always lived in the house, there was a clause in the will specifying that the propertycould not be sold for 2 years following her passing so he could continue to live there for a while. He now wants to remain in the house beyond the prescribed 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 mortgage in the usual way to purchase my equity?
- My Market Harborough Building Society home loan we jointly entered into with ex, who has agreed to come off the deeds and let me have the property. Market Harborough Building Society have consented to the transfer of equity to me solely. Do Market Harborough Building Society write my boss to verify my salary?
- What are my options where I am dissatisfied with the conveyancer who did our transfer of equity transaction?
- My wife and myself jointly own a BTL. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity to her sole name with a view to mitigate tax on rental income. If Market Harborough Building Society are fine with this the legal fees are inexpensive. 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.
- Can I transfer the equity held in my property with my Market Harborough Building Society home loan?
- I am transferring my share of a house in Woodside to the other co-owners fiance, they are sticking with Market Harborough Building Society being the the existing lender. We are debating as to who should cover the fees for the transfer of equity. Should this be shared or is one party liable for the fees for?
- I already have a mortgage with Market Harborough Building Society and am keeping my existing mortgaging but seeking to have it in my name alone so my former wife will no longer be on the deeds. How long do Market Harborough Building Society take to process the application?
Sample of information requested in a lawyer form relating to Market Harborough Building Society Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Has consent been obtained from Market Harborough Building Society to the proposed transfer of equity?
Please provide a copy of your National Insurance Number?
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Where 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” Questionnaire.
Please provide the details of anyone to be removed from the title deeds?
General Advice to read in in addition to the above Market Harborough Building Society transfer of equity information :
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 Market Harborough 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 conditions are not strictly observed you may be in breach of the lease. This could potentially result in 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 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 conveyancer will check with Market Harborough 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 Market Harborough 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 the time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Market Harborough Building Society your property may be repossessed.
Preparing the Transfer of Equity with a Market Harborough 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 Market Harborough 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.
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.