LenderPanel.com

Find a Law Firm for your Transfer of Equity approved by
Monmouthshire Building Society

Frequently asked questions relating to Monmouthshire Building Society transfer of equity

  • My fiance and I equally own a BTL. I am a higher rate tax payer. Preferably I would like to complete a transfer of equity to her sole name with a view to reduce our tax on rental income. If Monmouthshire Building Society are fine with this the legal fees are inexpensive. What are the implications when we sell? Would my GGT relief be lost.
  • Monmouthshire Building Society yesterday agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds on top?
  • Will I have to pay any fees for a Transfer of Equity where the existing home loan is with Monmouthshire Building Society?
  • What if my application doesn't meet Monmouthshire Building Society lending criteria for a transfer of equity?
  • My partner and I jointly own a house in Heathfield . Mortgage is with Monmouthshire Building Society. I want to transfer full ownership to him with no payment of money but without using a lawyer. Is this likely to be straightforward?
  • Me and a friend got a joint mortgage with Monmouthshire Building Society on a flat in 2013. I am now looking to get a property by myself and my friend would like to buy me out. Once we have agreed an amount what are the next steps? Is there likely to be any concerns with Monmouthshire Building Society with him being responsible for the total mortgage rather than only half of it?
  • As things stand I have a joint Monmouthshire Building Society mortgage with my brother and am looking into the feasibility of him assuming responsibility for the whole mortgage and removing myself from it, to enable me to purchase a property with my soon-to-be-wife. The outstanding mortgage is approx 200k, and the property value is about 600k. Is this a transfer of equity? Is land tax involved?

Sample of information requested in a conveyancing solicitor form relating to Monmouthshire Building Society Transfer of Equity

Please list all persons who occupy the property, their respective ages and relationships to you.

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

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 the Death Certificate, Probate and a copy of the Will.

Have you approached Monmouthshire Building Society to seek consent to the Transfer of Equity

Information to consider 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 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 have a license to do so from the landlord. If such conditions are not complied with you may be in violation of your covenants under the lease. This could potentially result in 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 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 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 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.


Frequently asked questions relating to Monmouthshire Building Society transfer of equity