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Principality Building Society

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

  • My fiance and myself have equal shares in a buy to let. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity to her sole name with a view to reduce our tax on rental income. Assuming Principality Building Society are content with this the legal fees are not high. What are the implications when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
  • Me and my former husband and I are are seeking to find a trustworthy conveyancing solicitor to help me sell in a transfer of equity and remortgage with Principality Building Society. I am aware of the possibility of getting ripped off and there are lots of conveyancing organisations who do transfer of equity conveyancing to choose from...who do I opt for?
  • At what point do I incur stamp duty due for the transfer of equity in my home in my sole name which is taking place simultaneously with a refinancing with Principality Building Society?
  • Is there such a thing a transfer of equity stamp duty calculator?
  • My divorce has gone through as is the consent order. Now I must address the transfer of equity for the property and the Principality Building Society mortgage. I have called Principality Building Society for the transfer of equity forms. What happens next?
  • My partner and I jointly own a house in Wakefield . Home loan is with Principality Building Society. I want to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Do you think this should be straightforward?
  • What if my application doesn't meet Principality Building Society lending criteria for a transfer of equity?

Examples of information requested in a conveyancer questionnaire relating to Principality Building Society Transfer of Equity

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?

Is the transfer of equity subject to a court order? If yes please supply a copy

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

Can you provide the name(s) and addresse(s) of anyone who jointly owns the premises with you?

Have you approached Principality Building Society to obtain consent to the Transfer of Equity

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Caveats to be read in conjunction with the above Principality Building Society transfer of equity information :

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 properties

If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such terms are not adhered to 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 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 the time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Principality Building Society.

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 lawyer 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.


Frequently asked questions relating to Principality Building Society transfer of equity