Questions and answers: Monmouthshire Building Society transfer of equity
- What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my Monmouthshire Building Society mortgage account?
- Me and a friend got a joint mortgage with Monmouthshire Building Society on a apartment a couple of years ago. I am now thinking of purchasing a apartment on my own and my friend would like to buy me out. Assuming we can agree an amount where do we go? Would there be any potential problem with Monmouthshire Building Society with him being on the hook for the total loan as opposed to only half of it?
- My decree absolute has gone through as is the consent order. Now I must sort out the transfer of equity at the land registry and the Monmouthshire Building Society mortgage. I have asked Monmouthshire Building Society for the transfer of equity application. What are my next steps?
- I am selling my equity in apartment in Hendon to the other co-owners fiance, they are reapplying to Monmouthshire Building Society. We are in heated discussion as to who must cover the fees for the transfer of equity. Is this usually split or is one of us liable for the legal bill?
- My mum passed away last January leaving a mortgage-free house to me and my half brother in equal shared. Having continues to reside at the house, there was a provision in her will saying the housecould not be sold for three years after her death so he could continue to live there for a prescribed period. 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 should get a valuation then he'd get a home loan in the traditional way to purchase my share?
- What legal advice do I need when doing a transfer of equity where the home loan is to remain with Monmouthshire Building Society?
- I am in the process of remortgaging my flat in Dunnington
does my lawyer have to be on the Monmouthshire Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
Examples of questions in a conveyancing solicitor questionnaire relating to Monmouthshire Building Society Transfer of Equity
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please provide the details of anyone to be added to the property title?
Can you give the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Has one of the registered proprietors died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Caveats to be read in further to 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 titles
If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such terms are not adhered to you may be in violation of your covenants under the lease. This could trigger 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 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 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.
Your property may be repossessed if you do not keep up repayments on your mortgage with Monmouthshire Building Society.
Preparing the Transfer of Equity with a Monmouthshire 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 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 lawyer 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.