Stafford Railway Building Society transfer of equity: q and a’s
- I got divorced in 2011. Foolishly I never dealt with the 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 (financial checks done). Does my ex need a solicitor?
- My father died last January leaving a loan-free semi to me and my brother 50:50. He has always lived in the house, there was a provision in her will specifying that the housecould not be sold for three years following her passing so he could continue to live there for a while. He now wants 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 mortgage in the usual way to purchase my share?
- As things stand I have a joint Stafford Railway Building Society mortgage with my step-brother and am looking into the feasibility of him taking on the whole mortgage and extracting myself from it, so as to enable me to buy a property with my fiance. The outstanding mortgage is about 175k, and the property value is about 450k. Is this a transfer of equity? Is land tax due?
- Is it sensible to cancel my mortgage payments with Stafford Railway Building Society as soon as a date for my remortgage and transfer of equity has been set?
- Given that we have been three years separated I have opted to relinquish up my interest in our property to my husband who is re-mortgaging with Stafford Railway Building Society. Could this transfer of equity be done within four weeks?
- What do I do if I am not happy with the lawyer who carried out my transfer of equity conveyancing?
- My current mortgage is with Stafford Railway Building Society. Can I transfer equity to someone under eighteen years old?
Questions that your lawyer could ask in relation to your Stafford Railway Building Society Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Will there be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Please provide a copy of your National Insurance Number?
Where you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please give the name(s) and addresse(s) of anyone to be removed from the title deeds?
Can you give the details of anyone who jointly owns the premises with you?
Caveats to be read in conjunction with the above Stafford Railway Building Society transfer of equity Info :
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 Stafford Railway Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach of your covenants under 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 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 finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Stafford Railway Building Society your property may be repossessed.
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 conveyancer 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.