Recently asked questions relating to Monmouthshire Building Society transfer of equity

• I currently have a joint Monmouthshire Building Society mortgage with my step-brother and am looking into the feasibility of him assuming responsibility for the whole mortgage and subtracting myself from it, so as to enable me to buy somewhere with my soon-to-be-wife. The remaining mortgage is approx 175k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty payable?
• I understand we would need at least AP1 and TR1. Is this true?
• Can I transfer the equity held in my property with my Monmouthshire Building Society home loan?
• My fiance and I jointly own a buy to let. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity to her sole name to mitigate tax on rental income. If 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 title documents am I giving up my CGT relief.
• I am completing a Monmouthshire Building Society transfer of equity form and have come to the part regarding defaults etc. There are some debts that I have been discharging for a number of years, in fact they have long since disappeared from my credit score. Am I obliged to reveal these?
• The mortgage broker has recommended their conveyancer for the Transfer of Equity plus remortgage with Monmouthshire Building Society - Is it not simpler advisable to just instruct them?
• Will I have to pay any charges for a Transfer of Equity where the current home loan is with Monmouthshire Building Society?

Questions that your conveyancer could ask about your Monmouthshire Building Society Transfer of Equity

General Advice to read in further to 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 premises

Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the freeholder. 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 as a result of 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 transaction.

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.