Recently asked questions relating to Saffron Building Society transfer of equity

• What is the process for having a person removed from the deeds to a house if the home loan is with Saffron Building Society
• I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
• My Saffron Building Society mortgage is in joint names with ex, he has agreed to be removed and let me have the property. Saffron Building Society will permit the transfer of equity to my individual name. Will Saffron Building Society call my employer to confirm my salary?
• I am transferring my share of a house in Warwick to the other co-owners husband, they are sticking with Saffron Building Society as the the existing mortgage company. We are in heated discussion as to who should cover the fees for the transfer of equity. Is this usually split or is one party obliged to cover the charges for?
• Saffron Building Society yesterday agreed I can take over the home loan on the house. I have applied for a transfer of equity but is this a transfer of ownership at HMLR in addition?
• I already have a mortgage with Saffron Building Society and am maintaining my existing mortgaging but seeking to have it in my sole name so my former wife won't be on it any longer. How long does the whole transfer of equity process take?
• What should I be budgeting for when it comes to what legal fees are for a transfer of equity? I need to transfer equity and remortgage - new loan with Saffron Building Society - and have been quoted Three Hundred pounds excluding VAT by Saffron Building Society's appointed lawyer, Is this is a good price or not?

Examples of information requested in a lawyer form relating to Saffron Building Society Transfer of Equity

Caveats to be read in conjunction with the above Saffron Building Society transfer of equity information :

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

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 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 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 lawyer 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 finalisation 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 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.

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.