Principality Building Society transfer of equity example support desk enquires

• I co-own a flat in Crabtree , with a Principality Building Society mortgage with my ex husband. Him and his new partner are going to buy me out. 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 formalities?
• Taking into account that we have been a number of years estranged I have opted to transfer my share of our flat to my husband who is re-mortgaging with Principality Building Society. Could this transfer of equity be completed in one month?
• My partner and I co-own a house in Littleborough . Home loan is with Principality Building Society. I want to transfer full ownership to him with no payment of money but without using a conveyancing solicitor. Is this likely to be easy to so?
• My divorce is through as is the consent order. Now I must sort out the transfer of equity on title deeds and the Principality Building Society mortgage. I have asked Principality Building Society for the transfer of equity application. What do I do now?
• I am considering remortgaging my flat in Witham does my lawyer need to be on the Principality Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Principality Building Society?
• What legal advice do I need when doing a transfer of equity where the home loan is to remain with Principality Building Society?

Questions that your conveyancer may ask about your Principality Building Society Transfer of Equity

General Advice to read in conjunction with the above Principality Building Society transfer of equity Info :

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 freeholder. If such conditions are not complied with you may be in breach 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 market value of the property at the conclusion 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 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 conveyancing solicitor 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.