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

• My partner and I equally own a BTL. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity to her sole name to reduce our tax on the letting income. Assuming Melton Mowbray Building Society are content with this the legal fees are not prohibitive. However what happens when we sell? As I would no longer be on the deeds am I giving up my CGT relief.
• I am disposing of my equity in flat in Warwick to the other co-owners husband, they are reapplying to Melton Mowbray Building Society. We are debating as to who must pay the legal bill for the transfer of equity. Is this normally shared or is one party liable for the legal bill?
• I co-own a house in Rye , with a Melton Mowbray Building Society loan with my former partner. Him and his new partner are going to acquire my share. We had consent from Melton Mowbray Building Society to replace my name with hers. The transfer of equity needs to be done by a conveyancing solicitor for Melton Mowbray Building Society (apparently). Is it possible for us to do the Land Registry change?
• What if my application doesn't meet Melton Mowbray Building Society lending criteria for a transfer of equity?
• My Melton Mowbray Building Society mortgage is in joint names with ex, he has agreed to come off the mortgage and put the house in my name alone. Melton Mowbray Building Society have consented to the transfer of equity to my individual name. Do Melton Mowbray Building Society get in touch with my company to check my salary?
• How and when do I pay stamp duty payable for the transfer of equity in my home in my name alone which is happening simultaneously with a refinancing with Melton Mowbray Building Society?
• Online research suggests that solicitors are more expensive than conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor if I am transferring equity and at the same time remortgaging with Melton Mowbray Building Society

Sample of information requested in a conveyancing solicitor form concerning a Melton Mowbray Building Society Transfer of Equity

General Advice to read in supporting the above Melton Mowbray Building Society transfer of equity Info :

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 properties

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not complied with you may be in breach 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 pursuant to 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 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 finalisation of the transfer of equity transaction.

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.

Content on 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.