Skipton Building Society transfer of equity example support desk enquires
- My ex are seeking to get a conveyancer in place for a new mortgage with Skipton Building Society. Transfer of Equity conveyancing is also necessaryI have used the different comparison based websites and the results are from all over England and Wales. How necessary is it to appoint a conveyancing solicitor local to us?
- I got my Decree Absolute three years ago. Foolishly I never got around to transfer ownership from both our names to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Skipton Building Society is content to transfer the property and loan in my name (financial checks done). Does she need a conveyancer?
- What legal advice do I need when doing a transfer of equity where the home loan is to remain with Skipton Building Society?
- My brother and I got a joint mortgage with Skipton Building Society on a property about a year ago. I am now thinking of buying a property on my own and my friend would like to buy me out. Once we have agreed a figure what happens next? Is there likely to be any problem with Skipton Building Society with him being solely liable for the total mortgage as opposed to only part of it?
- Law week I separated from my partner of thirty years. I'm now back with my mum and dad and she wants to remain in the apartment and pay me off. What percentage do I get. Is it 50% of the equity after paying off the Skipton Building Society home loan? I assume proper valuations are necessary but I would like to be sure that I'm getting I am not being walked over
- As things stand I have a joint Skipton Building Society mortgage with my cousin and am looking into the possibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, to enable me to buy a property with my soon-to-be-wife. The outstanding mortgage is approx 175k, and the property value is about 450k. Is this a transfer of equity? Is land tax involved?
- My Skipton Building Society mortgage is in joint names with ex, who has agreed 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 verify my salary?
Sample of questions in a conveyancer questionnaire relating to Skipton Building Society Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
Please give the name(s) and addresse(s) of anyone to be added to the property title?
If you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Is there to be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Information to consider in further to 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
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 strictly observed you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to 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 is dependent on the valuation of the property at finalisation of the transfer of equity transaction.
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.