Skipton Building Society transfer of equity: q and a’s

• Is it possible to transfer the equity held in my property with my Skipton Building Society mortgage?
• I am trying to find a conveyancer to handle my transfer of equity. Skipton Building Society are dealing with the refinancing. I thought of asking my financial adviser. I am lead to believe he may receive a referral fee for recommending a firm, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Any flaws you see in this way of thinking?
• My Skipton Building Society home loan is in joint names with ex, he is agreeable to come off the mortgage and let me have the property. Skipton Building Society have consented to the transfer of equity to me solely. Will Skipton Building Society contact my boss to confirm my salary?
• My partner and I equally own a BTL. I am a top rate tax payer. Preferably I wish to complete a transfer of equity into her name to mitigate tax on the letting income. If Skipton Building Society are happy with this the legal fees are not high. What are the implications when we sell? As I would no longer be on the deeds would I lose my CGT relief.
• My decree absolute has gone through as is the consent order. Now I must deal with the transfer of equity for the property and the Skipton Building Society mortgage. I have called Skipton Building Society for the transfer of equity forms. What do I do now?
• Last year bought a property without my fiance’s name on the ownership paperwork. My lawyer advised it is because she was not in the mortgage with Skipton Building Society. I'm wondering is there any way that I can add her name on the deeds?
• Do I need legal representation when doing a transfer of equity where the home loan is to remain with Skipton Building Society?

Examples of questions in a lawyer form concerning a 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 properties

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 complied with you may be in breach of your covenants under the lease. This could potentially result in 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 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 lawyer 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 market value of the property at finalisation of the transfer of equity transaction.

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 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 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.