Skipton Building Society transfer of equity example support desk enquires

• What legal advice do I need when doing a transfer of equity where the home loan is to remain with Skipton Building Society?
• As things stand I have a joint Skipton Building Society mortgage with my step-brother and am investigating the possibility of him assuming responsibility for the outstanding mortgage and extracting myself from it, to enable me to purchase a property with my soon-to-be-wife. The remaining mortgage is approx 175k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax involved?
• Is it possible to apply to borrow more money from Skipton Building Society as part of a Transfer of Equity?
• I am trying to find a conveyancer to deal with my transfer of equity. Skipton Building Society have been approached for a refinancing. I considered asking my mortgage broker. I understand he may get a kickback for recommending someone, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Is my logic correct?
• I am filling out a Skipton Building Society transfer of equity form and have arrived at the section regarding defaults etc. I do some debts that I have been discharging over a long period, in fact they have long since disappeared from my credit records. Am I obliged to disclose these?
• Skipton Building Society have today agreed I can take over the mortgage on my home. I had applied for a transfer of equity but is this a transfer of ownership of the house on top?
• Law week I split up with my ex of 18 years. I'm now back with my parents again and she wants to stay in the apartment and pay me off. What portion am I entitled to. Is it half of the equity after redeeming the mortgage with Skipton Building Society? I assume proper valuations are required but I would like ensure that I'm getting I am not being walked over

Sample of questions in a lawyer questionnaire concerning a Skipton Building Society Transfer of Equity

Information to consider in in addition to the above Skipton Building Society transfer of equity information :

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 obtain the consent of the landlord. If such conditions are not complied with you may be in breach of the lease. This could trigger 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 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 is dependent on the valuation 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 conveyancer 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.