Common questions relating to Skipton Building Society transfer of equity
- I acquired a property with my brother in 2010 Since purchasing the property, we have both got married. We are now looking to do a transfer of equity so my name is removed 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 own a apartment in Witham
, with a Skipton Building Society mortgage with my former partner. Him and his new partner are going to acquire my share. We had the go ahead from Skipton Building Society to remove my name with hers. The transfer of equity needs to be done by a conveyancing solicitor for Skipton Building Society (apparently). Can we do the Land Registry change?
- Given that we have been 4 years estranged I have decided to give up my share of the property to my husband who is re-mortgaging with Skipton Building Society. Can a transfer of equity be done in less than one month?
- Skipton Building Society yesterday agreed I can take over the mortgage on my home. I have applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry on top?
- As things stand I have a joint Skipton Building Society mortgage with my cousin and am investigating the feasibility of him taking on the whole mortgage and removing myself from it, so as to enable me to buy a place with my soon-to-be-wife. The outstanding mortgage is about 250k, and the property value is about 600k. Is this a transfer of equity? Is land tax due?
- My wife and I equally own 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 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 am I giving up my CGT relief.
- In 2009 I purchased a apartment without my partner's name on the title documents. My conveyancer said it is due to the fact that she was not in the loan offer with Skipton Building Society. I'm wondering is there any way that I can add her name on the documents at HMLR?
Questions that your conveyancing solicitor could ask about your Skipton Building Society Transfer of Equity
Please list all persons who occupy the property, their respective ages and relationships to you.
Have you approached Skipton Building Society to obtain consent to the Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please provide the details of anyone to be added to the title deeds?
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Where 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.
Important warnings to consider in conjunction with 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 properties
If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such terms are not adhered to 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 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 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 the conclusion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Skipton Building Society.
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 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.