Saffron Building Society transfer of equity: q and a’s

• I already have a mortgage with Saffron Building Society and am maintaining my current mortgaging but wish to have have the equity transferred to my name alone so my ex won't be on it any longer. How long do Saffron Building Society take to process the application?
• Can I transfer the equity held in my property with my Saffron Building Society mortgage?
• My dad passed away early last year leaving a unencumbered semi to me and my step brother in equal shared. He has always lived in the property, there was a provision in her will saying the housecould not be sold for 24 months after her death so he could continue to live there for a while. He now wishes to remain in the property beyond the specified period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the traditional way to acquire my half from me?
• I jointly own a house in Witham , with a Saffron Building Society loan with my ex husband. Him and his new partner are going to acquire my share. We had consent from Saffron Building Society to substitute my name with hers. The transfer of equity needs to be completed by a lawyer for Saffron Building Society (supposedly). Can we deal with the Land Registry formalities?
• How do I go about adding or removing names (transfer of equity) to or from my Saffron Building Society mortgage account?
• I am mortgaging my apartment in Winchelsea does my lawyer need to be on the Saffron Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
• Me and my partner co-own a property in Dunnington . Home loan is with Saffron Building Society. I would like to transfer full ownership to him with no passing of money but without using a lawyer. Do you think this should be simple?

Questions that your lawyer is likely to ask regarding your Saffron Building Society Transfer of Equity

Information to consider in further to the above Saffron 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 Saffron 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 require that you have a license to do so from the landlord. If such conditions are not complied with you may be in violation of the lease. This could potentially result in 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 Saffron 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 Saffron 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 valuation of the property at the time of completion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Saffron 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 Saffron 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 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.