Recently asked questions relating to Saffron Building Society transfer of equity
- My fiance and I have 50:50 shares in a investment property. I am a higher rate tax payer. Ideally I would like to do a transfer of equity into her name in order mitigate tax on the letting income. Assuming Saffron Building Society are fine with this the legal fees are not high. However what happens when we sell? As I would no longer be on the deeds am I giving up my CGT relief.
- Law month I separated from my partner of thirty years. I'm now back with my mum and dad and she wishes to stay in the property and buy me out. What portion am I entitled to. Is it half of the equity after redeeming the Saffron Building Society home loan? I assume proper valuations are required but I would like ensure that I'm getting I am not being taken advantage of
- How and when do I pay the Stamp Duty Land Tax chargeable for the transfer of equity in my property in my name alone which is taking place at the same time as a remortgage via Saffron Building Society?
- How much the typical conveyancing charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Saffron Building Society - and have been quoted £250 including VAT by Saffron Building Society's approved conveyancer, Have I been over quoted?
- Is it sensible to stop my mortgage payments with Saffron Building Society once a date for my remortgage and transfer of equity has been set?
- I am planning on removing a name from a joint mortgage and the Saffron Building Society require me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Romsey
conveyancer to deal with the transfer of equity? They need to be on the Saffron Building Society conveyancing panel.
- My financial adviser has recommended their conveyancer for my Transfer of Equity plus remortgage with Saffron Building Society - Surely it’s better to just use them?
Information that may be required from your conveyancer may ask about your Saffron Building Society Transfer of Equity
Is there to be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Please provide the details of anyone to be added to the title deeds?
Who will be responsible for the costs of the Transfer of Equity?
Has one of the registered proprietors passed away? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
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 state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Important warnings to consider in conjunction with the above Saffron Building Society transfer of equity Advice :
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
Should the tenure of your property be leasehold, provisions in 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 breach of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 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 is dependent on the market value of the property at the conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Saffron Building Society your property may be repossessed.
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.
Information contained within 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.