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Swansea Building Society

Frequently asked questions relating to Swansea Building Society transfer of equity

  • Am I best advised cancel the direct debit for my mortgage with Swansea Building Society as soon as a date for my remortgage and transfer of equity has been set?
  • I am disposing of my equity in flat in Warwick to the other co-owners husband, they are sticking with Swansea Building Society being the the existing lender. We are debating as to who must pay the costs of the transfer of equity. Is this usually shared or is one of us obliged to cover the costs of?
  • At what stage do I cover the costs of the Stamp Duty Land Tax due for the transfer of equity in my house in my sole name which is taking place simultaneously with a remortgage via Swansea Building Society?
  • Swansea Building Society have today agreed I can take over the home loan on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership at HMLR on top?
  • My existing home loan is with Swansea Building Society. Can I transfer equity to someone under eighteen years old?
  • Will I have to pay any fees for a Transfer of Equity where the existing home loan is with Swansea Building Society?
  • I am in the process of removing a name from a joint mortgage and the Swansea Building Society require me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Dunnington conveyancing solicitor to deal with the transfer of equity? They need to be on the Swansea Building Society conveyancing panel.

Sample of questions in a lawyer form relating to Swansea Building Society Transfer of Equity

Please list all persons who occupy the property, their respective ages and relationships to you.

Please provide a copy of your National Insurance Number?

Would you like us to draft you Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?

Is there to be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what sums

Who will be responsible for the costs of the Transfer of Equity?

Please provide the details of anyone to be added to the property title?

Information to consider in supplemental the above Swansea 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 Swansea 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 have a license to do so from the freeholder. If such terms are not adhered to you may be in breach of the lease. This could trigger 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 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 lawyer will check with Swansea 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 Swansea 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 Swansea Building Society your property may be repossessed.

Preparing the Transfer of Equity with a Swansea 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 Swansea 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.

Content 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.


Frequently asked questions relating to Swansea Building Society transfer of equity