Common questions relating to Newbury Building Society transfer of equity
- I am selling my equity in apartment in Birmingham to my co-owners husband, they are sticking with Newbury Building Society being the the existing lender. We are debating as to who must cover the costs of the transfer of equity. Is this usually shared or is one of us obliged to cover the legal bill?
- I intend to remortgage my apartment in Littleborough
changing from Bank of Scotland to Newbury Building Society. The apartment is jointly owned but intend for it to be in my name only as and when I transfer. My former partner is OK with this and is willing to transfer equity but neither of us want to get a second conveyancing solicitor involved.
- I am planning on removing a name from a joint mortgage and the Newbury Building Society require me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Crabtree
lawyer to deal with the transfer of equity? They need to be on the Newbury Building Society conveyancing panel.
- Me and my former partner and I are searching for a responsive conveyancing lawyer to assist in a transfer of equity and remortgage with Newbury Building Society. I want to avoid being ripped off but with many conveyancing organisations who do transfer of equity conveyancing out there...how do I know which one to appoint?
- What is the process for having someone removed from the deeds to a property where the home loan is with Newbury Building Society
- I jointly own a flat in Witham
, with a Newbury Building Society loan with my ex partner. He and his new partner are going to acquire my share. We had consent from Newbury Building Society to replace my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Newbury Building Society (supposedly). Can we do the Land Registry formalities?
- My Newbury Building Society home loan is in joint names with ex, he is agreeable to come off the deeds and put the house in my name alone. Newbury Building Society have consented to the transfer of equity to me solely. Do Newbury Building Society call my boss to confirm my salary?
Examples 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?
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
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?
Please give the details of anyone to be added to the title deeds?
Please let us know of you wish us to draw up a Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Information to consider in supporting the above Newbury Building Society transfer of equity Questions and Answers :
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 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 landlord. If such conditions are not complied with you may be in breach of your covenants under 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 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 varies based on the market value of the property at the time of completion of the transfer of equity conveyancing.
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 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 conveyancer 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 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.