Examples of recent questions relating to Principality Building Society transfer of equity
- Last year bought a house without my fiance’s name on the deeds. My conveyancer said it is because she is not in the loan offer with Principality Building Society. Is it possible for me to put her name on the title?
- My father died seven months ago leaving a unencumbered bungalow to me and my brother 50:50. He has always lived in the property, there was a clause in her will specifying that the housecould not be sold for three years following her death so he could remain there for a prescribed period. He now wants to remain in the premises beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the traditional way to buy my half from me?
- Is it sensible to cancel the direct debit for my mortgage with Principality Building Society as soon as a date for my remortgage and transfer of equity has been agreed?
- When it comes to transfer of equity conveyancing involving refinance with Principality Building Society should I be invoiced value added tax on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- I am disposing of my equity in property in Birmingham to my co-owners fiance, they are sticking with Principality Building Society as the the existing lender. We are debating as to who should cover the costs of the transfer of equity. Is this normally split or is one party liable for the charges for?
- My ex are seeking to get a lawyer in place for a remortgage with Principality Building Society. Transfer of Equity conveyancing is also requiredI have used the different rating based tools and the results are from all over the country. Is it important to appoint a conveyancing solicitor local to us?
- My -ex-husband and I are are seeking to find a responsive conveyancing solicitor to assist in a transfer of equity and remortgage with Principality Building Society. I I am concerned about appointing the wrong one and there are many conveyancing organisations who do transfer of equity conveyancing to choose from...who do I opt for?
Sample of information requested in a conveyancer form relating to Principality Building Society Transfer of Equity
Please provide the details of those who jointly own the premises with you?
Would you like us to draw up a Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
Please provide the details of anyone to be added to the property title?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide 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
Where you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
General Advice to read in in addition to 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 premises
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. 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.
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 lawyer 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 finalisation of the transfer of equity conveyancing.
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 conveyancer 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.