Top seven questions relating to Skipton Building Society transfer of equity
- I acquired a property with a friend in 2008 Since purchasing the property, we have both got married. We are now seeking to do a transfer of equity so my name is removed the Skipton Building Society mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- I am in the process of removing a name from a joint mortgage and the Skipton Building Society require me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Winchelsea
conveyancing solicitor to deal with the transfer of equity? They need to be on the Skipton Building Society conveyancing panel.
- Will I have to pay any charges for a Transfer of Equity where the existing home loan is with Skipton Building Society?
- Two years ago I bought a property without my partner's name on the title documents. My conveyancer said it is due to the fact that she was not in the mortgage with Skipton Building Society. I'm wondering is there any way that I can add her name on the title?
- What are the average conveyancing fees are for a transfer of equity? I'm in the process of remortgaging - new loan with Skipton Building Society - and have been quoted Four Hundred pounds including VAT by Skipton Building Society's approved conveyancer, Is this a reasonable price?
- My dad died seven months ago leaving a mortgage-free property to me and my step brother 50:50. He has always lived in the house, there was a clause in her will specifying that the housecould not be sold for 2 years after her passing so he could remain there for a while. He now wishes to remain in the premises beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the traditional way to buy my equity?
- As things stand I have a joint Skipton Building Society mortgage with my step-brother and am looking into the feasibility of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to purchase a place with my fiance. The remaining mortgage is in the region 300k, and the property value is about 450k. Is this a transfer of equity? Is stamp duty involved?
Information that may be required from your conveyancer is likely to ask regarding your Skipton Building Society Transfer of Equity
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?
Please clarify where you are providing any payment for the Transfer of Equity and to whom and specify the amount?
Please provide the details of anyone to be added to the property title?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
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 provide the details of anyone to be removed from the title deeds?
Important warnings to consider in in addition 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
If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.
Indemnity Insurance
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 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 is dependent on the valuation of the property at the conclusion 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 lawyer 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 should not be regarded as 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.
