Frequently asked questions relating to Principality Building Society transfer of equity
- My mum died early last year leaving a mortgage-free property to me and my brother in equal shared. Having continues to reside at the property, there was a provision in her will specifying that the propertycould not be sold for three years after her passing so he could continue to live there for a while. He now wants to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the conventional way to acquire my half from me?
- I got my Decree Absolute in 2012. I simply never dealt with the change the ownership from the current 'joint' status to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Principality Building Society is willing to transfer the property and loan in my name (financial checks done). Does she need any legal representation?
- My Principality Building Society mortgage is in joint names with ex, he is agreeable to be removed and let me have the property. Principality Building Society will permit the transfer of equity to me solely. Do Principality Building Society get in touch with my company to confirm my salary?
- At what stage do I pay the Stamp Duty Land Tax due for the transfer of equity in my property in my sole name which is happening simultaneously with a refinancing with Principality Building Society?
- My mortgage broker has recommended their conveyancing solicitor for the Transfer of Equity plus remortgage with Principality Building Society - Surely it’s advisable to just use them?
- I purchased a house with my cousin in 2010 Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Principality Building Society mortgage. There is a 40k difference between the value the mortgage company say and what the property would sell for currently. Can you offer any advice?
- My former wife are looking to get a lawyer in place for a refinance with Principality Building Society. Transfer of Equity conveyancing is also requiredI have used the different rating based websites and the results are from all over UK. How necessary is it to appoint a lawyer local to us?
Information that may be required from your conveyancer may ask about your Principality Building Society Transfer of Equity
Has consent been obtained from Principality Building Society to the proposed transfer of equity?
Can you provide the details of those who jointly own the premises with you?
Please give the details of anyone to be removed from the title deeds?
Who will be responsible for the costs of the Transfer of Equity?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
General Advice to read in in addition to the above Principality Building Society transfer of equity information :
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
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 restrictions are not strictly observed you may be in breach 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 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 conveyancing.
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 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.