Marsden Building Society transfer of equity: q and a’s

• I am in the process of removing a name from a joint mortgage and the Marsden Building Society need me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Heathfield lawyer to deal with the transfer of equity? They need to be on the Marsden Building Society conveyancing panel.
• My divorce is through as is the consent order. Now I have to address the transfer of equity on title deeds and the Marsden Building Society home loan. I have asked Marsden Building Society for the transfer of equity application. What do I do now?
• I got divorced three years ago. I simply never got around to change the ownership from the current 'joint' status to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Marsden Building Society is happy to transfer the property and loan in my name (financial checks done). Does she need a conveyancer?
• I am selling my share of a flat in Warwick to my co-owners fiance, they are reapplying to Marsden Building Society. We are haggling as to who must cover the legal bill for the transfer of equity. Should this be split or is one party liable for the charges for?
• I purchased a property with a friend six years ago Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name is removed the Marsden Building Society mortgage. There is a 40k difference between the value the bank hold and what the property would sell for currently. Can you offer any advice?
• Having been 4 years estranged I have made the decision to give up my interest in our apartment to my husband who is re-mortgaging with Marsden Building Society. Can a transfer of equity be completed in one month?
• I already have a home loan with Marsden Building Society and am maintaining my current mortgaging but seeking to have have the equity transferred to my name alone so my former wife will no longer be on the title. How long can it take for the application to be processed?

Examples of information requested in a conveyancer questionnaire relating to Marsden Building Society Transfer of Equity

Caveats to be read in supporting the above Marsden Building Society transfer of equity Info :

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 Marsden Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

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 conditions are not complied with you may be in breach of the lease. This could potentially result in 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 Marsden 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 Marsden 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 valuation of the property at finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Marsden 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 Marsden 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.