Principality Building Society transfer of equity example support desk enquires

• I got my Decree Absolute four years ago. Foolishly I never dealt with the change the ownership from the current 'joint' status to just in my name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Principality Building Society is willing to transfer the full equity in my name (financial checks done). Does she need a solicitor?
• My partner and myself have 50:50 shares in a investment property. I am a higher rate tax payer. Preferably I would like to do a transfer of equity into her name in order mitigate tax on the letting income. Assuming Principality Building Society are happy with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.
• I co-own a property in Rye , with a Principality Building Society mortgage with my ex husband. Him and his fiance are going to acquire my share. We had the go ahead from Principality Building Society to substitute my name with hers. The transfer of equity needs to be done by a conveyancer for Principality Building Society (apparently). In order to save fees can I deal with the Land Registry formalities?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Principality Building Society?
• How do I go about adding or removing names (transfer of equity) to or from my Principality Building Society mortgage account?
• Do I need legal representation when doing a transfer of equity where the home loan is to remain with Principality Building Society?
• My ex are planning to get a lawyer lined up for a refinance with Principality Building Society. Transfer of Equity conveyancing is also neededI have used the different rating based websites and the results are from all over UK. How necessary is it to appoint a conveyancing solicitor local to us?

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

Information to consider in supplemental the above Principality 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 Principality Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

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 freeholder. If such conditions are not complied with you may be in violation of the lease. This could trigger 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 conveyancing solicitor 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 the time of completion of the transfer of equity transaction.

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 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.