Recently asked questions relating to Market Harborough Building Society transfer of equity
- I already have a home loan with Market Harborough Building Society and am maintaining my existing mortgaging but wish to have it in my name alone so my ex will be removed from the mortgage. How long does the whole transfer of equity process take?
- I am remortgaging my house in Dunnington
does my lawyer have to be on the Market Harborough Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
- My mum died half a year ago leaving a mortgage-free semi to me and my brother equally. Having continues to reside at the property, there was a provision in the will specifying that the propertycould not be sold for 24 months after her passing so he could reside there for a while. He now wants to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the usual way to buy my share?
- Market Harborough Building Society have just agreed I can take over the mortgage on my home. I have applied for a transfer of equity but is this a transfer of ownership of the title deeds as well?
- My brother and I got a joint mortgage with Market Harborough Building Society on a house in 2013. I am now looking to get a property by myself and my friend would like to buy me out. Once we have agreed a price what happens next? Would there be any potential problem with Market Harborough Building Society with him being responsible for the total loan rather than only part of it?
- I am transferring my share of a apartment in Warwick to my co-owners fiance, they are reapplying to Market Harborough Building Society. We are debating as to who should cover the fees for the transfer of equity. Should this be split or is one party obliged to cover the costs of?
- What if my application doesn't meet Market Harborough Building Society lending criteria for a transfer of equity?
Sample of information requested in a lawyer questionnaire concerning a Market Harborough Building Society Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Has one of the registered owners passed away? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
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 provide the name(s) and addresse(s) of those who jointly own the premises with you?
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Who will be responsible for the costs of the Transfer of Equity?
Important warnings to consider in supporting the above Market Harborough 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 Market Harborough Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
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 landlord. If such conditions are not complied with 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 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 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 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 lawyer 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 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.
