Frequently asked questions relating to Monmouthshire Building Society transfer of equity
- When it comes to transfer of equity conveyancing involving a remortgage with Monmouthshire Building Society should I be charged value added tax 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
- What should I be budgeting for when it comes to what conveyancing charges are for a transfer of equity? I need to transfer equity and remortgage - moving over to Monmouthshire Building Society - and have been quoted Four Hundred pounds plus VAT by Monmouthshire Building Society's appointed lawyer, Is this a reasonable price?
- The mortgage broker has recommended their conveyancing solicitor for the Transfer of Equity plus remortgage with Monmouthshire Building Society - Is it not simpler easier to just use them?
- My current home loan is with Monmouthshire Building Society. Can I transfer equity to someone who is not yet 18 years old?
- Me and a friend got a joint mortgage with Monmouthshire Building Society on a house about a year ago. I am now looking to get a property on my own and my friend would like to buy me out. On the basis that we can settle on an amount what are the next steps? Would there be any potential concerns with Monmouthshire Building Society with him being responsible for the total mortgage as opposed to only part of it?
- My wife and myself have equal shares in a investment property. I am a top rate tax payer. Ideally I would like to complete a transfer of equity into her name in order reduce our tax on the letting income. Assuming Monmouthshire Building Society are content with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the deeds would I lose my CGT relief.
- What can I do where I am dissatisfied with the conveyancing solicitor who undertook my transfer of equity conveyancing?
Questions that your conveyancer may ask in relation to your Monmouthshire Building Society Transfer of Equity
Where you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
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
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Would you like us to draw up a Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Information to consider in supporting the above Monmouthshire Building Society transfer of equity Advice :
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 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 restrictions are not strictly observed you may be in violation 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 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 valuation of the property at finalisation 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 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.
