Principality Building Society transfer of equity example support desk enquires

• My partner and I co-own a flat in Romsey . Home loan is with Principality Building Society. I wish to transfer full ownership to him with no passing of money but without using a conveyancer. Is this likely to be easy to so?
• Principality Building Society have just agreed I can take over the mortgage on the house. I previously applied for a transfer of equity but is this a transfer of ownership at HMLR on top?
• My Principality Building Society mortgage is in joint names with ex, who is agreeable to be removed and put the house in my name alone. Principality Building Society have consented to the transfer of equity to my individual name. Will Principality Building Society contact my company to confirm my salary?
• As things stand I have a joint Principality Building Society mortgage with my cousin and am looking into the possibility of him taking on the whole mortgage and extracting myself from it, to enable me to purchase a property with my soon-to-be-wife. The remaining mortgage is in the region 200k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax due?
• I own a apartment in Blaenavon , with a Principality Building Society mortgage with my ex partner. He and his new partner are going to acquire my share. We had the go ahead from Principality Building Society to remove my name with hers. The transfer of equity has to be completed by a lawyer for Principality Building Society (supposedly). In order to save fees can I deal with the Land Registry change?
• I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
• How do I go about adding or removing names (transfer of equity) to or from my Principality Building Society mortgage account?

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.