Penrith Building Society transfer of equity: q and a’s
- What are my options where I am not happy with the lawyer who did my transfer of equity transaction?
- My friend and I got a joint mortgage with Penrith Building Society on a flat in 2013. I am now looking to get a property on my own and my friend would like to buy me out. Once we have agreed a figure where do we go? Would there be any potential issue with Penrith Building Society with him being responsible for the total loan rather than only part of it?
- My wife and I have 50:50 shares in a buy to let. I am a higher rate tax payer. Ideally I wish to do a transfer of equity into her name with a view to reduce our tax on rental income. If Penrith Building Society are content with this the legal fees are not high. However what happens when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.
- What should I be budgeting for when it comes to what legal costs are for a transfer of equity? I'm in the process of remortgaging - moving over to Penrith Building Society - and have been quoted £250 including VAT by Penrith Building Society's approved lawyer, Have I been over quoted?
- My former husband are seeking to get a lawyer lined up for a remortgage with Penrith Building Society. Transfer of Equity conveyancing is also requiredI have used the different rating based websites and the results are from all over UK. Is it important to instruct a conveyancing solicitor local to us?
- I am led to believe we would need at least AP1 and TR1. Is this true?
- Me and my former fiance and I are are seeking to find a responsive conveyancing solicitor to help me sell in a transfer of equity and remortgage with Penrith Building Society. I am aware of the dangers of getting ripped off but with various conveyancing solicitors who do transfer of equity conveyancing out there...who do I opt for?
Information that may be required from your lawyer is likely to ask about your Penrith Building Society Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
If you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please give the name(s) and addresse(s) of anyone to be extracted from the title deeds?
Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Please confirm where you are making any payment for the Transfer of Equity and to whom and give details of the amount?
Please list all persons who occupy the property, their respective ages and relationships to you.
General Advice to read in conjunction with the above Penrith 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 Penrith Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
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 freeholder. If such conditions are not strictly observed you may be in breach of the lease. This could trigger 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 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 varies based on the valuation of the property at finalisation of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Penrith Building Society.
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 lawyer 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.