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Melton Mowbray Building Society

Questions and answers: Melton Mowbray Building Society transfer of equity

  • I am am in need of a lawyer to deal with my transfer of equity. Melton Mowbray Building Society have been approached for a refinancing. I thought of asking my mortgage broker. I am lead to believe he may get a kickback for recommending a firm, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Is my logic misguided?
  • I am considering refinancing my home in Heathfield does my lawyer need to be on the Melton Mowbray Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
  • My partner and myself equally own a BTL. I am a top rate tax payer. Ideally I wish to do a transfer of equity to her sole name to mitigate tax on the letting income. If Melton Mowbray Building Society are happy with this the legal fees are not prohibitive. However what happens when we sell? Would my GGT relief be lost.
  • I bought a property with a friend in 2009 Since purchasing the property, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Melton Mowbray Building Society mortgage. There is a significant difference between the value the lender say and what the property would sell for currently. Can you offer any advice?
  • What if my application doesn't meet Melton Mowbray Building Society lending criteria for a transfer of equity?
  • When it comes to transfer of equity conveyancing involving refinance with Melton Mowbray Building Society should I be paying value added tax 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
  • As things stand I have a joint Melton Mowbray Building Society mortgage with my step-brother and am looking into the option of him assuming responsibility for the whole mortgage and removing myself from it, so as to enable me to buy somewhere with my soon-to-be-wife. The remaining mortgage is in the region 300k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty involved?

Information that may be required from your conveyancer could ask regarding your Melton Mowbray Building Society Transfer of Equity

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

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Please give the details of anyone to be added to 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 give the details of anyone who jointly owns the premises with you?

Where you 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?

Information to consider in supplemental the above Melton Mowbray 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 Melton Mowbray Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

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 terms are not adhered to 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 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 conclusion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Melton Mowbray Building Society your property may be repossessed.

Preparing the Transfer of Equity with a Melton Mowbray 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 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 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 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.


Frequently asked questions relating to Melton Mowbray Building Society transfer of equity