Recently asked questions relating to Penrith Building Society transfer of equity

• Last year bought a property without my partner's name on the title documents. My conveyancer said it is because she was not in the loan offer with Penrith Building Society. Is it possible for me to put her name on the title?
• Me and a friend got a joint mortgage with Penrith Building Society on a apartment a couple of years ago. I am now looking to get a property on my own and my friend would like to buy me out. Assuming we can agree a price where do we go? Would there be any potential concerns with Penrith Building Society with him being solely liable for the total loan rather than only part of it?
• At what point do I cover the costs of the Stamp Duty Land Tax payable for the transfer of equity in my property in my sole name which is happening simultaneously with a switching mortgage via Penrith Building Society?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Penrith Building Society?
• My partner and I jointly own a house in Witham . Home loan is with Penrith Building Society. I would like to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Is this likely to be simple?
• I am mortgaging my home in Witham does my lawyer need to be on the Penrith Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
• My current mortgage is with Penrith Building Society. Can I transfer equity to someone less than eighteen years old?

Questions that your conveyancer may ask regarding your Penrith Building Society Transfer of Equity

Important warnings to consider in supplemental 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 premises

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 freeholder. If such terms are not adhered to you may be in violation of your covenants under the lease. This could potentially result in 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 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 is dependent on the valuation of the property at the conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Penrith Building Society Mortgage

When it comes to preparing the the Land Registry documents your lawyer 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.

Information contained within 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.