Frequently asked questions relating to Marsden Building Society transfer of equity

• At what stage do I pay the Stamp Duty Land Tax chargeable for the transfer of equity in my house in my name alone which is happening simultaneously with a remortgage with Marsden Building Society?
• Is there such a thing a transfer of equity stamp duty calculator?
• I am are looking to find a value for money conveyancing lawyer to assist in a transfer of equity and remortgage with Marsden Building Society. I I am fearful of being overcharged and there are plenty conveyancing practices who do transfer of equity conveyancing out there...how do I know which to select?
• Can I transfer the equity held in my property with my Marsden Building Society home loan?
• My Marsden Building Society home loan we jointly entered into with ex, who has agreed to come off the deeds and let me have the property. Marsden Building Society have consented to the transfer of equity to my individual name. Will Marsden Building Society call my boss to verify my salary?
• What legal advice do I need when doing a transfer of equity where the home loan is to remain with Marsden Building Society?
• How much the typical legal fees are for a transfer of equity? I need to transfer equity and remortgage - new loan with Marsden Building Society - and have been quoted £350 plus VAT by Marsden Building Society's appointed conveyancing solicitor, Have I been over quoted?

Examples of questions in a conveyancer questionnaire concerning a Marsden Building Society Transfer of Equity

Important warnings to consider in in addition to the above Marsden 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 Marsden Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in violation of 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 conveyancer 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 market value of the property at the time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Marsden 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 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.