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Market Harborough Building Society

Frequently asked questions relating to Market Harborough Building Society transfer of equity

  • I own a apartment in Littleborough , with a Market Harborough Building Society mortgage with my ex partner. Him and his new partner are going to acquire my share. We had consent from Market Harborough Building Society to replace my name with hers. The transfer of equity needs to be completed by a lawyer for Market Harborough Building Society (apparently). Is it possible for us to do the Land Registry formalities?
  • When it comes to transfer of equity conveyancing involving a remortgage with Market Harborough Building Society should I be charged VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
  • My Market Harborough Building Society mortgage we jointly entered into with ex, who is agreeable to come off the deeds and put the house in my name alone. Market Harborough Building Society will permit the transfer of equity to me solely. Do Market Harborough Building Society get in touch with my company to confirm my salary?
  • Is it sensible to stop the direct debit for my mortgage with Market Harborough Building Society once a date for my remortgage and transfer of equity has been agreed?
  • Me and a friend got a joint mortgage with Market Harborough Building Society on a apartment a couple of years ago. I am now thinking of buying a house by myself and my friend would like to buy me out. Once we have agreed an amount what are the next steps? Would there be any potential concerns with Market Harborough Building Society with him being solely liable for the total loan as opposed to only half of it?
  • What are the average legal fees are for a transfer of equity? I need to transfer equity and remortgage - moving over to Market Harborough Building Society - and have been quoted Four Hundred pounds excluding VAT by Market Harborough Building Society's approved lawyer, Have I been over quoted?
  • At what point do I incur the Stamp Duty Land Tax payable for the transfer of equity in my house in my name alone which is happening simultaneously with a refinancing with Market Harborough Building Society?

Questions that your lawyer is likely to ask regarding your Market Harborough Building Society Transfer of Equity

Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

Please provide the details of anyone to be removed from the property title?

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?

Please let us know of you wish us to prepare Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?

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

Information to consider in conjunction with the above Market Harborough Building Society transfer of equity information :

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 Market Harborough Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is 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 restrictions are not strictly observed you may be in violation 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 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 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 is dependent on the market value of the property at the time of completion of the transfer of equity transaction.
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 lawyer 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 conveyancing solicitor 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.


Frequently asked questions relating to Market Harborough Building Society transfer of equity