Principality Building Society transfer of equity: q and a’s

• I am in the process of mortgaging my house in Winchelsea does my lawyer need to be on the Principality Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
• I bought a house with my cousin in 2008 Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name is removed the Principality Building Society mortgage. There is a significant difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
• My former husband are planning to get a lawyer lined up for a new mortgage with Principality Building Society. Transfer of Equity conveyancing is also neededI have used the different rating based tools and the results are from all over England and Wales. Is it important to instruct a lawyer local to us?
• Am I best advised stop the direct debit for my mortgage with Principality Building Society as soon as a date for my remortgage and transfer of equity has been set?
• Can I apply to borrow more money from Principality Building Society as part of a Transfer of Equity?
• I currently have a joint Principality Building Society mortgage with my cousin and am looking into the possibility of him taking on the whole mortgage and subtracting myself from it, so as to enable me to buy somewhere with my fiance. The remaining mortgage is in the region 175k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax payable?
• What can I do where I am unhappy with the conveyancing solicitor who did my transfer of equity conveyancing?

Information that may be required from your conveyancer could ask in relation to your Principality Building Society Transfer of Equity

Information to consider in further to 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 titles

If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with you may be in breach of 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 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 market value of the property at the time of completion of the transfer of equity conveyancing.

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 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.