Sample questions relating to Stafford Railway Building Society transfer of equity
- My divorce is through as is the consent order. Now I need to deal with the transfer of equity at the land registry and the Stafford Railway Building Society home loan. I have called Stafford Railway Building Society for the transfer of equity forms. What are my next steps?
- My wife and myself jointly own a BTL. I am a higher rate tax payer. Preferably I wish to do a transfer of equity to her sole name to mitigate tax on rental income. If Stafford Railway Building Society are fine with this the legal fees are not prohibitive. What are the implications when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
- What if my application doesn't meet Stafford Railway Building Society lending criteria for a transfer of equity?
- What should I be budgeting for when it comes to what legal charges are for a transfer of equity? I need to transfer equity and remortgage - new loan with Stafford Railway Building Society - and have been quoted Four Hundred pounds excluding VAT by Stafford Railway Building Society's approved conveyancer, Is this is a good price or not?
- Having been 2 a couple of years apart I have opted to give up my share of our property to my husband who is refinancing with Stafford Railway Building Society. Could this transfer of equity be done within one month?
- My dad died last May leaving a mortgage-free house to me and my step brother equally. He has always lived in the premises, there was a condition in her will specifying that the propertycould not be sold for 2 years following her death so he could remain there for a while. He now wishes to remain in the house beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the usual way to purchase my half from me?
- My Stafford Railway Building Society home loan is in joint names with ex, who has agreed to be removed and let me have the property. Stafford Railway Building Society will permit the transfer of equity to my individual name. Will Stafford Railway Building Society get in touch with my boss to check my salary?
Questions that your conveyancer may ask in relation to your Stafford Railway Building Society Transfer of Equity
Please give the details of anyone to be added to the title deeds?
Would you like us to draft you Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Who will be responsible for the costs of the Transfer of Equity?
Please provide the name(s) and addresse(s) of anyone to be removed from the property title?
Is the transfer of equity subject to a court order? If yes please supply a copy
General Advice to read 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 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 your covenants under the lease. This could potentially result in 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 situations, 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 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 time of completion of the transfer of equity conveyancing.
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 conveyancing solicitor 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.