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Skipton Building Society

Sample questions relating to Skipton Building Society transfer of equity

  • Taking into account that we have been 2 a couple of years estranged I have decided to relinquish up my share of the house to my husband who is re-mortgaging with Skipton Building Society. Could this transfer of equity be done inside four weeks?
  • How much the typical conveyancing charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Skipton Building Society - and have been quoted £250 excluding VAT by Skipton Building Society's appointed conveyancing solicitor, Have I been over quoted?
  • I am led to believe we would need at least AP1 and TR1. Is this true?
  • I am disposing of my equity in apartment in Warwick to my co-owners fiance, they are reapplying to Skipton Building Society. We are haggling as to who must pay the legal bill for the transfer of equity. Is this usually split or is one party liable for the fees for?
  • My fiance and I have 50:50 shares in a BTL. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity into her name in order reduce our tax on the letting income. If Skipton Building Society are content with this the legal fees are not prohibitive. What are the implications when we sell? Would my GGT relief be lost.
  • Do I need legal representation when doing a transfer of equity where the home loan is to remain with Skipton Building Society?
  • What if my application doesn't meet Skipton Building Society lending criteria for a transfer of equity?

Examples of questions in a lawyer form relating to Skipton Building Society Transfer of Equity

If you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Has one of the registered proprietors died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Please give the name(s) and addresse(s) of anyone to be added to the property title?

Has consent been obtained from Skipton Building Society to the proposed transfer of equity?

Who will be responsible for the costs of the Transfer of Equity?

General Advice to read in conjunction with the above Skipton 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 Skipton Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in breach of 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 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 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 the conclusion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Skipton Building Society your property may be repossessed.

Preparing the Transfer of Equity with a Skipton 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 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 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.


Frequently asked questions relating to Skipton Building Society transfer of equity