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Newbury Building Society

Recently asked questions relating to Newbury Building Society transfer of equity

  • Have recently separated from my wife of twenty years. I'm now living with my parents again and she wants to stay in the apartment and pay me off. What portion do I get. Is it 50% of the equity after discharging the Newbury Building Society home loan? I assume proper valuations are required but I would like to be sure that I'm getting what I am entitled to
  • My friend and I got a joint mortgage with Newbury Building Society on a apartment in 2013. I am now looking to get a apartment on my own and my friend would like to buy me out. Assuming we can agree a price what are the next steps? Is there likely to be any issue with Newbury Building Society with him being solely liable for the total loan rather than only part of it?
  • Me and my former partner and I are searching for an affordable conveyancing solicitor to help me sell in a transfer of equity and refinance with Newbury Building Society. I I am fearful of appointing the wrong one but with many conveyancing practices who do transfer of equity conveyancing out there...how do I know which is best select?
  • Having been four years estranged I have opted to relinquish up my share of the property to my husband who is re-mortgaging with Newbury Building Society. Could this transfer of equity be done inside four weeks?
  • I am selling my equity in house in Hendon to my co-owners husband, they are sticking with Newbury Building Society being the the existing lender. We are in heated discussion as to who should pay the fees for the transfer of equity. Should this be split or is one party obliged to cover the charges for?
  • What if my application doesn't meet Newbury Building Society lending criteria for a transfer of equity?
  • At what point do I pay stamp duty due for the transfer of equity in my home in my name alone which is taking place simultaneously with a remortgage with Newbury Building Society?

Information that may be required from your conveyancing solicitor is likely to ask about your Newbury Building Society Transfer of Equity

If you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

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

Is the transfer of equity subject to a court order? If yes please supply a copy

Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?

Is there to be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what sums

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

Caveats to be read in supporting 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 titles

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and 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.

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 market value of the property at the time of completion of the transfer of equity conveyancing.
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 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.


Frequently asked questions relating to Newbury Building Society transfer of equity