Examples of recent questions relating to Penrith Building Society transfer of equity
- I am under the impression we would need at least AP1 and TR1. Is this true?
- As things stand I have a joint Penrith Building Society mortgage with my cousin and am looking into the possibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, to enable me to buy somewhere with my soon-to-be-wife. The remaining mortgage is in the region 175k, and the property value is about 500k. Is this a transfer of equity? Is stamp duty involved?
- What are my options where I am dissatisfied with the lawyer who conducted our transfer of equity transaction?
- How much the typical 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 Four Hundred pounds excluding VAT by Penrith Building Society's appointed conveyancer, Is this is a good price or not?
- I am am in need of a conveyancing solicitor to deal with my transfer of equity. Penrith Building Society are dealing with the refinancing. I thought of asking my mortgage broker. I understand he will likely get a referral fee for suggesting a firm, but also of benefit will be that he knows the conveyancer, has dealt with them before. Is my logic flawed?
- Having been 4 years estranged I have decided to relinquish up my share of the apartment to my husband who is refinancing with Penrith Building Society. Can a transfer of equity be completed in less than one month?
- How and when do I pay stamp duty due for the transfer of equity in my home in my name alone which is taking place at the same time as a refinancing via Penrith Building Society?
Questions that your conveyancer is likely to ask in relation to your Penrith Building Society Transfer of Equity
Please clarify if you are providing any payment for the Transfer of Equity and to whom and disclose any such sums?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Would you like us to draft you Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
Can you give the details of those who jointly own the premises with you?
Have you approached Penrith Building Society to obtain consent to the Transfer of Equity
Please list all persons who occupy the property, their respective ages and relationships to you.
Caveats to be read in supplemental the above Penrith Building Society transfer of equity Info :
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 premises
If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such restrictions 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 pursuant to 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 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 varies based on the market value of the property at finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Penrith Building Society your property may be repossessed.
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.