Top seven questions relating to Penrith Building Society transfer of equity
- Me and a friend got a joint mortgage with Penrith Building Society on a property in 2013. I am now thinking of buying a house by myself and my friend would like to buy me out. Assuming we can agree a figure where do we go? Would there be any potential concerns with Penrith Building Society with him being on the hook for the total loan as opposed to only part of it?
- My father died seven months ago leaving a mortgage-free bungalow to me and my half brother 50:50. He has always lived in the property, there was a provision in her will specifying that the premisescould not be sold for 24 months after her death so he could remain there for a specified time frame. He now wishes to remain in the premises beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the conventional way to acquire my half from me?
- Our financial adviser has suggested using their lawyer for the Transfer of Equity plus remortgage with Penrith Building Society - Surely it’s advisable to just use them?
- My partner and I co-own a house in Miles Platting
. Home loan is with Penrith Building Society. I wish to transfer full ownership to him with no payment of money but without using a conveyancing solicitor. Is this likely to be easy to so?
- I am hoping to refinance my flat in Littleborough
moving from Barclays to Penrith Building Society. The flat is jointly owned but intend for it to be in my sole name as and when I switch. My wife is OK with this and is happy to transfer equity but neither of us want to incur conveyancing solicitor fees.
- How much the typical solicitors costs are for a transfer of equity? I need to transfer equity and remortgage - new loan with Penrith Building Society - and have been quoted £250 plus VAT by Penrith Building Society's appointed conveyancer, Is this a reasonable price?
- 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 paperwork. Can you recommend a reasonably priced Littleborough
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 lawyer may ask in relation to your Penrith Building Society Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please list all persons who occupy the property, their respective ages and relationships to you.
Have you approached Penrith Building Society to obtain consent to the Transfer of Equity
Will there be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what figure
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Caveats to be read in supporting 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
Should the tenure of your property be leasehold, 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 violation 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 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 valuation 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 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 conveyancing solicitor 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.
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.