Recently asked questions relating to Newbury Building Society transfer of equity

• At what point do I incur stamp duty chargeable for the transfer of equity in my house in my sole name which is taking place simultaneously with a remortgage with Newbury Building Society?
• Is it possible to apply to request more money from Newbury Building Society as part of a Transfer of Equity?
• My ex-wife and I are searching for an affordable conveyancing solicitor to help me sell in a transfer of equity and remortgage with Newbury Building Society. I really don't want to get ripped off but with various conveyancing solicitors who do transfer of equity conveyancing to pick from...who's the best?
• My brother and I got a joint mortgage with Newbury Building Society on a apartment about a year ago. I am now thinking of buying a flat on my own and my friend would like to buy me out. On the basis that we can settle on a price what happens next? Is there likely to be any issue with Newbury Building Society with him being responsible for the total loan as opposed to only part of it?
• I own a property in Miles Platting , with a Newbury Building Society mortgage with my former husband. Him and his new partner are going to buy me out. We had consent from Newbury Building Society to substitute my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Newbury Building Society (supposedly). Can we deal with the Land Registry formalities?
• Is it possible to transfer the equity held in my property with my Newbury Building Society home loan?
• I am answering a Newbury Building Society transfer of equity application and have come to the questions concerning defaults etc. I do some debts that I have been reducing over a long period, in fact they have long since disappeared from my credit score. Do I need to set these out?

Questions that your lawyer could ask in relation to your Newbury Building Society Transfer of Equity

Important warnings to consider in supplemental the above Newbury Building Society transfer of equity Info :

Tax and Legal

There may be various 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 premises

If your property is 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 strictly observed you may be in violation of the lease. This could trigger 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 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 conveyancer 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 finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a Newbury 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 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.

Content 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.