Top seven questions relating to Penrith Building Society transfer of equity
- I got my Decree Absolute in 2010. Foolishly I never got around to transfer ownership from both our names to my sole name. I am ready to do that and so is she. Transfer-of-equity is needed. Penrith Building Society is happy to transfer the property and loan in my name (affordability checks done). Does my ex need any legal representation?
- When it comes to transfer of equity conveyancing involving a remortgage with Penrith Building Society should I be paying VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- My friend and I got a joint mortgage with Penrith Building Society on a apartment in 2013. I am now looking to get a flat by myself and my friend would like to buy me out. Once we have agreed a figure what are the next steps? Is there likely to be any concerns with Penrith Building Society with him being responsible for the total loan rather than only part of it?
- My financial adviser has suggested using their conveyancer for our Transfer of Equity plus remortgage with Penrith Building Society - won’t it be better to just use them?
- I am in the market for an affordable conveyancing lawyer to assist in a transfer of equity and remortgage with Penrith Building Society. I am aware of the risk of getting ripped off and there's plenty conveyancing organisations who do transfer of equity conveyancing to choose from...who do I opt for?
- What should I be budgeting for when it comes to what solicitors charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Penrith Building Society - and have been quoted £350 plus VAT by Penrith Building Society's appointed conveyancing solicitor, Have I been over quoted?
- I co-own a apartment in Winchelsea
, with a Penrith Building Society loan with my ex partner. He and his new partner are going to buy me out. We had the go ahead from Penrith Building Society to substitute my name with hers. The transfer of equity needs to be done by a conveyancing solicitor for Penrith Building Society (supposedly). Is it possible for us to deal with the Land Registry change?
Information that may be required from your lawyer is likely to ask regarding your Penrith Building Society Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?
Is there to be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Can you give the name(s) and addresse(s) of anyone who jointly owns the property with you?
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Important warnings to consider in in addition to 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, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in violation 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 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.
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 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 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 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.