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Penrith Building Society

Frequently asked questions relating to Penrith Building Society transfer of equity

  • What are my options where I am not happy with the conveyancer who conducted my transfer of equity conveyancing?
  • Me and a friend got a joint mortgage with Penrith Building Society on a property about a year ago. I am now thinking of purchasing a apartment on my own and my friend would like to buy me out. Once we have agreed an amount what are the next steps? Would there be any potential issue with Penrith Building Society with him being solely liable for the total mortgage rather than only part of it?
  • Law week I split up with my ex of twenty years. I'm now back with my mum and dad and she wants to stay in the flat and pay me off. What percentage do I get. Is it 50% of the equity after paying off the Penrith Building Society home loan? I assume proper valuations are necessary but I would like to be sure that I'm getting I am not being walked over
  • I am planning on removing a name from a joint mortgage and the Penrith Building Society require me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Heathfield lawyer to deal with the transfer of equity? They need to be on the Penrith Building Society conveyancing panel.
  • Penrith Building Society have just agreed I can take over the home loan on the flat. I had applied for a transfer of equity but is this a transfer of ownership of the house on top?
  • What is the process for having a person removed off the title documents to a house where the home loan is with Penrith Building Society
  • Is it possible to apply to request a further advance from Penrith Building Society as part of a Transfer of Equity?

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

Please give the details of anyone to be removed from the title deeds?

Have you approached Penrith Building Society to seek consent to the Transfer of Equity

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

Can you provide the details of those who jointly own the property with you?

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

Where you are adding someone 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.

Important warnings to consider in supporting the above Penrith Building Society transfer of equity Advice :

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 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 restrictions are not strictly observed 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 as a result of an Order of the Court, then Insolvency Indemnity Insurance is not required. In other situations, 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 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 market value 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 conveyancing solicitor 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.


Frequently asked questions relating to Penrith Building Society transfer of equity