Questions and answers: Skipton Building Society transfer of equity
- I am am in need of a conveyancing solicitor to deal with my transfer of equity. Skipton Building Society have been approached for a refinancing. I considered asking my financial adviser. I am lead to believe he will likely receive a referral fee for suggesting a firm, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Is my logic flawed?
- I am answering a Skipton Building Society transfer of equity form and have arrived at the questions concerning defaults etc. There are some debts that I have been discharging over a long period, I understand that they no longer remain my credit score. Do I need to set these out?
- I acquired a property with my cousin six years ago Since then, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Skipton Building Society mortgage. There is a 30k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- I plan to remortgage my flat in Ampthill switching from Barnsley BS to Skipton Building Society. The home is jointly owned but intend for it to be in my name only as and when I switch. My husband has agreed to this and is happy to transfer equity but neither of us want to incur conveyancer fees.
- My Skipton Building Society mortgage we jointly entered into with ex, he has agreed to be removed and let me have the property. Skipton Building Society have consented to the transfer of equity to my individual name. Will Skipton Building Society write my company to check my salary?
- Having been 4 years estranged I have decided to transfer my interest in the flat to my husband who is re-mortgaging with Skipton Building Society. Could this transfer of equity be done in 28 days?
- Me and my partner co-own a house in Blaenavon
. Home loan is with Skipton Building Society. I would like to transfer full ownership to him with no passing of money but without using a lawyer. Is this likely to be straightforward?
Examples of information requested in a conveyancing solicitor questionnaire concerning a Skipton Building Society Transfer of Equity
Please provide a copy of your National Insurance Number?
If you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
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 what sums
Is it the case that one of the registered owners passed away? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.
Please provide the details of anyone to be removed from the property title?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Information to consider in supplemental the above Skipton Building Society transfer of equity information :
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 premises
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 complied with you may be in violation of the lease. This could trigger 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 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 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 lawyer 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.