Common questions relating to Principality Building Society transfer of equity
- My former wife are planning to get a lawyer lined up for a remortgage with Principality Building Society. Transfer of Equity conveyancing is also neededI have used the different comparison based websites and the results are from all over the country. How necessary is it to appoint a lawyer local to us?
- I am disposing of my share of a house in Birmingham to my co-owners husband, they are reapplying to Principality Building Society. We are haggling as to who should pay the costs of the transfer of equity. Should this be split or is one of us obliged to cover the costs of?
- Given that we have been a number of years separated I have opted to give up my share of our flat to my husband who is re-mortgaging with Principality Building Society. Can a transfer of equity be completed within four weeks?
- I am looking for a conveyancer to undertake my transfer of equity. Principality Building Society have been approached for a refinancing. I considered asking my financial adviser. I am lead to believe he may get a referral fee for suggesting someone, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic misguided?
- Me and my partner co-own a flat in Wakefield
. Home loan is with Principality Building Society. I wish to transfer full ownership to him with no payment of money but without using a conveyancer. Is this likely to be simple?
- I am thinking of remortgaging my home in Timperley
does my lawyer have to be on the Principality Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
- I intend to remortgage my apartment in Friern Barnet
moving from Accord to Principality Building Society. The apartment is jointly owned but propose for it to be in my sole name as and when I transfer. My former partner is OK with this and is happy to sign a form but neither of us want to incur conveyancing solicitor fees.
Sample of questions in a lawyer questionnaire relating to Principality Building Society Transfer of Equity
Has one of the registered proprietors died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
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 provide a copy of your National Insurance Number?
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?
Has consent been obtained from Principality Building Society to the proposed transfer of equity?
Caveats to be read in further to the above Principality Building Society transfer of equity Advice :
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 titles
If your property is leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in breach of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to 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 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 varies based on the market value of the property at the conclusion 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 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 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 does not constitute 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.