Newbury Building Society transfer of equity example support desk enquires
- My dad died half a year ago leaving a unencumbered house to me and my half brother equally. Having continues to reside at the premises, there was a clause in her will saying the housecould not be sold for 24 months after her death so he could reside there for a while. He now wishes to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the traditional way to purchase my share?
- I intend to refinance my home in Ampthill changing from Skipton to Newbury Building Society. The maisonette is currently in joint names but wish for it to be in my sole name once I switch. My wife is OK with this and is willing to sign a form but neither of us want to incur conveyancing solicitor fees.
- How do I go about adding or subtracting names (transfer of equity) to or from my Newbury Building Society mortgage account?
- I understand we would need at least AP1 and TR1. Is this true?
- Me and my former partner and I are are looking to find an affordable conveyancing solicitor to help me sell in a transfer of equity and remortgage with Newbury Building Society. I am aware of the chance of getting ripped off and there are many conveyancing practices who do transfer of equity conveyancing out there...who's the best?
- I got my Decree Absolute in 2012. Foolishly I never dealt with the transfer ownership from the current 'joint' status to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Newbury Building Society is happy to transfer the property and loan in my name (affordability checks done). Does she need any legal representation?
- My brother and I got a joint mortgage with Newbury Building Society on a flat in 2013. I am now thinking of purchasing a house on my own and my friend would like to buy me out. Once we have agreed a figure what are the next steps? Would there be any potential problem with Newbury Building Society with him being solely liable for the total mortgage as opposed to only half of it?
Sample of information requested in a conveyancer questionnaire relating to Newbury Building Society Transfer of Equity
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?
If are going to hold 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 let us know if you are providing any payment for the Transfer of Equity and to whom and give details of any such sums?
Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
Who will be responsible for the costs of the Transfer of Equity?
Is the transfer of equity subject to a court order? If yes please supply a copy
Caveats to be read in supplemental the above Newbury Building Society transfer of equity information :
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 Newbury Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with 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 lawyer will check with Newbury 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 Newbury 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 valuation of the property at the time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Newbury Building Society.
Preparing the Transfer of Equity with a Newbury 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 Newbury 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 should not be regarded as 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.