Top seven questions relating to Melton Mowbray Building Society transfer of equity
- My partner and I co-own a property in Heathfield
. Mortgage is with Melton Mowbray Building Society. I wish to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Is this likely to be straightforward?
- I am remortgaging my flat in Littleborough
does my lawyer have to be on the Melton Mowbray Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
- How and when do I cover the costs of the Stamp Duty Land Tax chargeable for the transfer of equity in my property in my sole name which is happening at the same time as a switching mortgage via Melton Mowbray Building Society?
- My Melton Mowbray Building Society home loan we jointly entered into with ex, who is agreeable to be removed and put the house in my name alone. Melton Mowbray Building Society will permit the transfer of equity to my individual name. Will Melton Mowbray Building Society call my employer to confirm my salary?
- What should I be budgeting for when it comes to what conveyancing charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Melton Mowbray Building Society - and have been quoted £250 excluding VAT by Melton Mowbray Building Society's appointed conveyancing solicitor, Is this a reasonable price?
- My ex are seeking to get a conveyancer in place for a new mortgage with Melton Mowbray Building Society. Transfer of Equity conveyancing is also necessaryI have used the different comparison based tools and the results are from all over the country. Is it important to instruct a lawyer local to us?
- I am looking for a lawyer to handle my transfer of equity. Melton Mowbray Building Society are dealing with the refinancing. I thought of asking my financial adviser. I understand he may receive a referral fee for recommending a firm, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Any flaws you see in this way of thinking?
Questions that your conveyancing solicitor is likely to ask regarding your Melton Mowbray Building Society Transfer of Equity
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please let us know of you wish us to prepare Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
Please let us know where you are providing any payment for the Transfer of Equity and to whom and disclose the amount?
Please provide the details of anyone to be removed from the title deeds?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Who will be responsible for the costs of the Transfer of Equity?
General Advice to read in conjunction with the above Melton Mowbray Building Society transfer of equity Advice :
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 Melton Mowbray 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 obtain the consent of 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.
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 Melton Mowbray 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 Melton Mowbray 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 valuation of the property at the time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Melton Mowbray Building Society.
Preparing the Transfer of Equity with a Melton Mowbray Building Society Mortgage
When it comes to preparing the the Land Registry documents your conveyancer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.
If Melton Mowbray 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.
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.