Common questions relating to Monmouthshire Building Society transfer of equity
- I already have a home loan with Monmouthshire Building Society and am keeping my current mortgaging but applying to have it in my name alone so my former husband won't be on it any longer. How long do Monmouthshire Building Society take to process the application?
- I am am in need of a conveyancer to handle my transfer of equity. Monmouthshire Building Society have been approached for a remortgage. I considered asking my financial adviser. I understand he may receive a kickback for suggesting someone, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Is my logic misguided?
- I am selling my share of a flat in Hendon to the other co-owners fiance, they are sticking with Monmouthshire Building Society being the the existing lender. We are in heated discussion as to who must pay the fees for the transfer of equity. Should this be split or is one party liable for the legal bill?
- How much the typical legal costs are for a transfer of equity? I'm in the process of remortgaging - moving over to Monmouthshire Building Society - and have been quoted £250 including VAT by Monmouthshire Building Society's approved lawyer, Have I been over quoted?
- My decree absolute has gone through as is the consent order. Now I need to address the transfer of equity for the property and the Monmouthshire Building Society home loan. I have contacted Monmouthshire Building Society for the transfer of equity forms. What do I do now?
- I got divorced in 2010. Foolishly I never dealt with the transfer ownership from the current 'joint' status to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Monmouthshire Building Society is content to transfer the full equity in my name (affordability checks done). Does she need a lawyer?
- My Monmouthshire Building Society mortgage is in joint names with ex, he has agreed to be removed and let me have the property. Monmouthshire Building Society have consented to the transfer of equity to my individual name. Do Monmouthshire Building Society contact my employer to check my salary?
Information that may be required from your lawyer may ask in relation to your Monmouthshire Building Society Transfer of Equity
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?
Have you approached Monmouthshire Building Society to seek consent to the Transfer of Equity
Please list all persons who occupy the property, their respective ages and relationships to you.
Can you provide the name(s) and addresse(s) of those who jointly own the premises with you?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Is the transfer of equity subject to a court order? If yes please supply a copy
General Advice to read in conjunction with the above Monmouthshire 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 Monmouthshire Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold, 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 conditions are not complied with you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 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 market value of the property at the time of completion of the transfer of equity conveyancing.
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 conveyancing solicitor 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 conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information provided 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.