Recently asked questions relating to Saffron Building Society transfer of equity
- As things stand I have a joint Saffron Building Society mortgage with my cousin and am investigating the option of him taking on the whole mortgage and removing myself from it, to enable me to buy a place with my soon-to-be-wife. The outstanding mortgage is in the region 200k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax payable?
- I own a house in Miles Platting
, with a Saffron Building Society loan with my former partner. He and his new partner are going to acquire my share. We had the go ahead from Saffron Building Society to substitute my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Saffron Building Society (apparently). Can we deal with the Land Registry change?
- Saffron Building Society yesterday agreed I can take over the mortgage on my home. I have applied for a transfer of equity but is this a transfer of ownership of the house as well?
- Me and my partner jointly own a flat in Wakefield
. 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 conveyancer. Is this likely to be simple?
- Is there such a thing a transfer of equity stamp duty calculator?
- How much the typical legal charges are for a transfer of equity? I need to transfer equity and remortgage - moving over to Saffron Building Society - and have been quoted Four Hundred pounds excluding VAT by Saffron Building Society's approved conveyancing solicitor, Is this a reasonable price?
- I am completing a Saffron Building Society transfer of equity application and have arrived at the section concerning defaults etc. There are some debts that I have been clearing for a number of years, in fact they have long since disappeared from my credit rating. Am I obliged to reveal these?
Examples of questions in a conveyancing solicitor form relating to Saffron Building Society Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Who will be responsible for the costs of the Transfer of Equity?
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 state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please inform us if you are providing any payment for the Transfer of Equity and to whom and specify any such sums?
Please provide the details of anyone to be removed from the title deeds?
Caveats to be read in supporting the above Saffron 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 Saffron Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
If your property is leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in violation of your covenants under the lease. This could trigger 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 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 market value of the property at the conclusion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Saffron Building Society.
Preparing the Transfer of Equity with a Saffron 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 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.
Information provided 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.