Top seven questions relating to Monmouthshire Building Society transfer of equity
- Law month I separated from my ex of 18 years. I'm now back with my parents again and she wants to stay in the property and pay me off. What percentage do I get. Is it 50% of the equity after redeeming the mortgage with Monmouthshire Building Society? I assume proper valuations are required but I would like to be confident that I'm getting what I am entitled to
- My friend and I got a joint mortgage with Monmouthshire Building Society on a house in 2013. 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 a price where do we go? Is there likely to be any issue with Monmouthshire Building Society with him being responsible for the total loan as opposed to only half of it?
- My partner and myself equally own a investment property. I am a top rate tax payer. Preferably I would like to do a transfer of equity into her name to 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? Would my GGT relief be lost.
- My divorce is through as is the consent order. Now I must address the transfer of equity at the HMLR and the Monmouthshire Building Society mortgage. I have called Monmouthshire Building Society for the transfer of equity forms. What happens next?
- Can you tell me how to have someone removed off the deeds to a property where the mortgage is with Monmouthshire Building Society
- Three years ago I purchased a apartment without my fiance’s name on the deeds. My conveyancing solicitor said it is due to the fact that she is not in the loan offer with Monmouthshire Building Society. I'm wondering is there any way that I can add her name on the documents at HMLR?
- Monmouthshire Building Society yesterday agreed I can take over the home loan on the flat. I have applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry on top?
Information that may be required from your conveyancing solicitor could ask regarding your Monmouthshire Building Society Transfer of Equity
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Have you approached Monmouthshire Building Society to obtain consent to the Transfer of Equity
If you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please give the details of anyone to be added to the title deeds?
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 clarify if you are providing any payment for the Transfer of Equity and to whom and give details of the amount?
Important warnings 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 premises
If your property is leasehold, the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in breach of the lease. This could potentially result in 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 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 conveyancing solicitor 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 is dependent on the market value of the property at the time of completion 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 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.