Common questions relating to Monmouthshire Building Society transfer of equity
- I am mortgaging my property in Littleborough
does my lawyer need to be on the Monmouthshire Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
- Me and my former fiance and I are are seeking to find an affordable conveyancing lawyer to help me sell in a transfer of equity and remortgage with Monmouthshire Building Society. I I am fearful of by bill escalating out of control and there are many conveyancing practices who do transfer of equity conveyancing to choose from...how do I know which is best appoint?
- My dad passed away early last year leaving a unencumbered property to me and my brother 50:50. He has always lived in the house, there was a clause in the will saying the premisescould not be sold for 24 months after her death so he could remain there for a specified time frame. He now says he would like to remain in the property beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the traditional way to acquire my share?
- I jointly own a flat in Ampthill , with a Monmouthshire Building Society mortgage with my former husband. Him and his new partner are going to buy me out. We had consent from Monmouthshire Building Society to replace my name with hers. The transfer of equity has to be completed by a conveyancer for Monmouthshire Building Society (apparently). In order to save fees can I deal with the Land Registry formalities?
- When it comes to transfer of equity conveyancing involving a remortgage with Monmouthshire Building Society should I be paying VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- Taking into account that we have been 3 years apart I have opted to give up my share of our house to my husband who is refinancing with Monmouthshire Building Society. Could this transfer of equity be done in less than four weeks?
- As things stand I have a joint Monmouthshire Building Society mortgage with my brother and am looking into the possibility of him assuming responsibility for the outstanding mortgage and extracting myself from it, to enable me to purchase a place with my soon-to-be-wife. The remaining mortgage is in the region 200k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax due?
Sample of questions in a conveyancing solicitor form concerning a Monmouthshire Building Society Transfer of Equity
Please provide a copy of your National Insurance Number?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Has consent been obtained from Monmouthshire Building Society to the proposed transfer of equity?
Who will be responsible for the costs of the Transfer of Equity?
Has one of the registered owners passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Important warnings to consider in in addition to the above Monmouthshire 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 Monmouthshire Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
If your property is leasehold, 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.
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 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 Monmouthshire 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 Monmouthshire 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 transaction.
If you do not keep up the payments on your mortgage with Monmouthshire Building Society your property may be repossessed.
Preparing the Transfer of Equity with a Monmouthshire 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 Monmouthshire 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 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.