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Are you in need of a Transfer of Equity with a Principality Building Society mortgage? Failing to check that a lawyer is on the Principality Building Society list of approved solicitors can put your transfer at risk of delay or failure. Only LenderPanel.com provides a subset of authorised conveyancers for over 130 lenders.

Top seven questions relating to Principality Building Society transfer of equity

  • Taking into account that we have been 2 a couple of years separated I have decided to relinquish up my interest in our property to my husband who is re-mortgaging with Principality Building Society. Could this transfer of equity be completed in one month?
  • My former husband are seeking to get a conveyancing solicitor lined up for a remortgage with Principality Building Society. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over England and Wales. Do we need to appoint a lawyer local to us?
  • What is the process for adding or subtracting names (transfer of equity) to or from my Principality Building Society mortgage account?
  • At what stage do I incur stamp duty payable for the transfer of equity in my home in my name alone which is taking place simultaneously with a remortgage with Principality Building Society?
  • I am trying to find a conveyancing solicitor to handle my transfer of equity. Principality Building Society are dealing with the refinancing. I thought of asking my mortgage broker. I am lead to believe he will likely receive a referral fee for recommending a firm, but also of benefit will be that he knows the lawyer, has a working relationship with them. Is my logic correct?
  • My current mortgage is with Principality Building Society. Can I transfer equity to someone less than 18 years old?
  • As things stand I have a joint Principality Building Society mortgage with my brother and am looking into the possibility of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to buy a property with my partner. The outstanding mortgage is approx 175k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax payable?

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

Where you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)

If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Is there to be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what figure

Can you provide the details of anyone who jointly owns the property with you?

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Information to consider in supporting the above Principality Building Society transfer of equity Advice :

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 Principality 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 conditions are not complied with you may be in breach 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 as a result of an Order of the Court, then Insolvency Indemnity Insurance is not required. In other cases, 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 conveyancer will check with Principality 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 Principality 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 finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Principality Building Society your property may be repossessed.

Preparing the Transfer of Equity with a Principality 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 Principality 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 conveyancer 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 Principality Building Society transfer of equity