Skipton Building Society transfer of equity: q and a’s
- My fiance and myself have 50:50 shares in a investment property. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity into her name in order mitigate tax on rental income. Assuming Skipton Building Society are happy with this the legal fees are not high. However what happens when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
- My Skipton Building Society home loan is in joint names with ex, who is agreeable to come off the deeds and let me have the property. Skipton Building Society have consented to the transfer of equity to me solely. Do Skipton Building Society contact my boss to verify my salary?
- I am in the process of refinancing my property in Timperley
does my lawyer have to be on the Skipton Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
- Been looking at online forums that solicitors are more expensive than conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I am transferring equity and simultaneously switching mortgage with Skipton Building Society
- My decree absolute is 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 contacted Skipton Building Society for the transfer of equity application. What are my next steps?
- I intend to remortgage my home in Wakefield
moving from Leeds Building Society to Skipton Building Society. The maisonette is jointly owned but wish for it to be in my sole name once I switch. My wife has verbally consented to this and is willing to sign a form but neither of us want to get a second conveyancing solicitor involved.
- I got my Decree Absolute three years ago. I simply 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 happy to transfer the property and loan in my name (financial checks done). Does my ex need a conveyancer?
Questions that your lawyer could ask in relation to your Skipton Building Society Transfer of Equity
Please list all persons who occupy the property, their respective ages and relationships to you.
Please provide a copy of your National Insurance Number?
Please provide the details of anyone to be removed from the property title?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Please give the details of those who jointly own the premises with you?
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Information to consider in supporting the above Skipton Building Society transfer of equity Questions and Answers :
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 titles
Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. 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.
If the transfer of equity is made pursuant to 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 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 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Content 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.