Frequently asked questions relating to Penrith Building Society transfer of equity

• As things stand I have a joint Penrith Building Society mortgage with my cousin and am investigating the feasibility of him assuming responsibility for the outstanding mortgage and removing myself from it, so as to enable me to buy a place with my partner. The outstanding mortgage is in the region 175k, and the property value is approx 600k. Is this a transfer of equity? Is stamp duty due?
• My existing mortgage is with Penrith Building Society. Can I transfer equity to someone who is not yet eighteen years old?
• My friend and I got a joint mortgage with Penrith Building Society on a apartment in 2013. I am now looking to get a apartment by myself and my friend would like to buy me out. Assuming we can agree a figure what are the next steps? Would there be any potential issue with Penrith Building Society with him being solely liable for the total mortgage as opposed to only half of it?
• My partner and I co-own a house in Blaenavon . Home loan is with Penrith Building Society. I wish to transfer full ownership to him with no payment of money but without using a lawyer. Is this likely to be straightforward?
• My Penrith Building Society home loan is in joint names with ex, who has agreed to be removed and let me have the property. Penrith Building Society have consented to the transfer of equity to my individual name. Will Penrith Building Society contact my boss to confirm my salary?
• After 4 years apart I have decided to give up my interest in our house to my husband who is refinancing with Penrith Building Society. Could this transfer of equity be completed inside four weeks?
• I am planning on removing a name from a joint mortgage and the Penrith Building Society need me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Heathfield conveyancing solicitor to deal with the transfer of equity? They need to be on the Penrith Building Society conveyancing panel.

Information that may be required from your conveyancer could ask about your Penrith Building Society Transfer of Equity

Important warnings to consider in in addition to the above Penrith 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 Penrith 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 restrictions are not strictly observed you may be in violation of your covenants under 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 conveyancing solicitor will check with Penrith 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 Penrith 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 transaction.

Preparing the Transfer of Equity with a Penrith 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 Penrith 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.