Recently asked questions relating to Saffron Building Society transfer of equity
- Is stamp duty payable when it comes to an transfer of equity with a mortgage with Saffron Building Society?
- Will I have to pay any charges for a Transfer of Equity where the current mortgage is with Saffron Building Society?
- My partner and I have equal shares in a BTL. I am a top rate tax payer. Preferably I would like to do a transfer of equity to her sole name in order mitigate tax on rental income. Assuming Saffron Building Society are fine with this the legal fees are not prohibitive. What are the implications when we sell? Would my GGT relief be lost.
- I purchased a flat with my brother six years ago Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name comes off the Saffron Building Society mortgage. There is a 40k difference between the value the bank say and what the property would sell for currently. Can you offer any advice?
- I am completing a Saffron Building Society transfer of equity application and have arrived at the part concerning debts etc. There are some debts that I have been clearing over a long period, I understand that they have long since disappeared from my credit rating. Do I need to reveal these?
- I plan to remortgage my apartment in Dunnington
moving from Leeds Building Society to Saffron Building Society. The apartment is currently in joint names but propose for it to be in my sole name as and when I switch. My husband has agreed to this and is happy to sign a form but neither of us want to get a second lawyer involved.
- Law week I separated from my partner of thirty years. I'm now back with my mum and dad and she wants to remain in the property and buy me out. What portion am I entitled to. Is it 50% of the equity after redeeming the Saffron Building Society home loan? I assume proper valuations are required but I would like to be sure that I'm getting what I am entitled to
Sample of information requested in a lawyer form concerning a Saffron Building Society Transfer of Equity
Please let us know if you are making any payment for the Transfer of Equity and to whom and give details of any such sums?
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 the details of anyone to be extracted from the title deeds?
Where you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Is the transfer of equity subject to a court order? If yes please supply a copy
Have you approached Saffron Building Society to seek consent to the Transfer of Equity
Important warnings to consider in supporting the above Saffron Building Society transfer of equity Info :
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, provisions in 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 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 conveyancer 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.
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 lawyer 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 lawyer 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 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.