Frequently asked questions relating to Stafford Railway Building Society transfer of equity
- My decree absolute is through as is the consent order. Now I must sort out the transfer of equity on title deeds and the Stafford Railway Building Society home loan. I have called Stafford Railway Building Society for the transfer of equity application. What are my next steps?
- I am am in need of a conveyancing solicitor to deal with my transfer of equity. Stafford Railway Building Society have been approached for a refinancing. I considered asking my financial adviser. I understand he will likely get a kickback for recommending someone, but also of benefit will be that he knows the conveyancer, has dealt with them before. Any flaws you see in this way of thinking?
- I already have a home loan with Stafford Railway Building Society and am maintaining my current mortgaging but wish to have it in my name alone so my former wife will come off the deeds. How long do Stafford Railway Building Society take to process the application?
- As things stand I have a joint Stafford Railway Building Society mortgage with my brother and am investigating the feasibility of him taking on the outstanding mortgage and removing myself from it, to enable me to purchase a place with my soon-to-be-wife. The remaining mortgage is about 250k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax due?
- I got my Decree Absolute in 2012. I simply never got around to transfer ownership from the current 'joint' status to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Stafford Railway Building Society is happy to transfer the full equity in my name (affordability checks done). Does my ex need any legal representation?
- How and when do I cover the costs of the Stamp Duty Land Tax chargeable for the transfer of equity in my home in my sole name which is happening simultaneously with a remortgage via Stafford Railway Building Society?
- How do I go about adding or subtracting names (transfer of equity) to or from my Stafford Railway Building Society mortgage account?
Questions that your lawyer is likely to ask regarding your Stafford Railway Building Society Transfer of Equity
Can you provide the name(s) and addresse(s) of those who jointly own the property with you?
Where 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” Form.
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Please give the name(s) and addresse(s) of anyone to be added to the property title?
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?
Has one of the registered proprietors died? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
Information to consider in supplemental the above Stafford Railway 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 Stafford Railway Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
If your property is 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 potentially result in 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 Stafford Railway 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 Stafford Railway 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 market value 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 Stafford Railway Building Society.
Preparing the Transfer of Equity with a Stafford Railway 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 Stafford Railway 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 contained within 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.