Skipton Building Society transfer of equity example support desk enquires

• I am considering refinancing my home in Witham does my lawyer need to be on the Skipton Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
• What if my application doesn't meet Skipton Building Society lending criteria for a transfer of equity?
• My Skipton Building Society mortgage we jointly entered into with ex, he is agreeable to come off the deeds and put the house in my name alone. Skipton Building Society will permit the transfer of equity to me solely. Do Skipton Building Society get in touch with my company to check my salary?
• I am under the impression we would need at least AP1 and TR1. Is this true?
• I am disposing of my share of a property in Warwick to my co-owners husband, they are reapplying to Skipton Building Society. We are haggling as to who should pay the costs of the transfer of equity. Should this be shared or is one of us obliged to cover the costs of?
• At what stage do I incur the Stamp Duty Land Tax payable for the transfer of equity in my home in my name alone which is happening at the same time as a refinancing with Skipton Building Society?
• Taking into account that we have been four years apart I have made the decision to give up my share of our property to my husband who is re-mortgaging with Skipton Building Society. Can a transfer of equity be completed in one month?

Examples of questions in a conveyancer questionnaire relating to Skipton Building Society Transfer of Equity

Important warnings to consider in conjunction with the above Skipton 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 Skipton 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 require that you obtain the consent of 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 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 Skipton 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 Skipton 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 Skipton 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 Skipton 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 conveyancer 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.