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Newbury Building Society transfer of equity: q and a’s

  • What is the process for having someone removed off the deeds to a property where the mortgage is with Newbury Building Society
  • Me and my former wife and I are in the market for a responsive conveyancing lawyer to help me sell in a transfer of equity and remortgage with Newbury Building Society. I I am fearful of by bill escalating out of control but with many conveyancing practices who do transfer of equity conveyancing out there...how do I know which to appoint?
  • My former wife are looking to get a lawyer in place for a refinance with Newbury Building Society. Transfer of Equity conveyancing is also necessaryI have used the different rating based services and the results are from all over the country. Is it important to have a conveyancing solicitor local to us?
  • I am thinking of mortgaging my property in Dunnington does my lawyer need to be on the Newbury Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
  • My friend and I got a joint mortgage with Newbury Building Society on a house in 2013. I am now looking to get a flat by myself and my friend would like to buy me out. Once we have agreed a figure what happens next? Is there likely to be any problem with Newbury Building Society with him being responsible for the total mortgage as opposed to only half of it?
  • What are my options where I am unhappy with the lawyer who undertook my transfer of equity conveyancing?
  • What if my application doesn't meet Newbury Building Society lending criteria for a transfer of equity?

Sample of questions in a lawyer questionnaire concerning a Newbury Building Society Transfer of Equity

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?

Is it the case that one of the registered owners passed away? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..

Please provide the details of those who jointly own the premises with you?

Please clarify where you are providing any payment for the Transfer of Equity and to whom and specify the amount?

Has consent been obtained from Newbury Building Society to the proposed transfer of equity?

Please give the name(s) and addresse(s) of anyone to be removed from the property title?

General Advice to read in further to the above Newbury 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 Newbury 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 obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of 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 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 varies based on the valuation of the property at the time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Newbury Building Society your property may be repossessed.

Preparing the Transfer of Equity with a Newbury 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 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 provided on 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.


Frequently asked questions relating to Newbury Building Society transfer of equity