Swansea Building Society transfer of equity example support desk enquires
- I currently have a joint Swansea Building Society mortgage with my brother and am investigating the option of him taking on the outstanding mortgage and subtracting myself from it, to enable me to buy a property with my soon-to-be-wife. The remaining mortgage is in the region 175k, and the property value is about 600k. Is this a transfer of equity? Is land tax payable?
- Law week I separated from my partner of 18 years. I'm now living with my mum and dad and she wants to stay in the property and pay me off. What portion am I entitled to. Is it half of the equity after discharging the Swansea Building Society home loan? I assume proper valuations are necessary but I would like ensure that I'm getting what I am entitled to
- Me and my partner jointly own a house in Dunnington
. Mortgage is with Swansea Building Society. I want to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Do you think this should be simple?
- Can I transfer the equity held in my property with my Swansea Building Society home loan?
- My dad passed away early last year leaving a mortgage-free house to me and my step brother equally. Having continues to reside at the property, there was a clause in the will saying the premisescould not be sold for 24 months after her death so he could continue to live there for a while. He now wants to remain in the house beyond the specified 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 traditional way to acquire my half from me?
- What are the average conveyancing charges are for a transfer of equity? I'm in the process of remortgaging - new loan with Swansea Building Society - and have been quoted £350 excluding VAT by Swansea Building Society's appointed conveyancer, Is this is a good price or not?
- Is it possible to apply to borrow a further advance from Swansea Building Society as part of a Transfer of Equity?
Sample of questions in a conveyancer questionnaire concerning a Swansea Building Society Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Have you approached Swansea Building Society to seek consent to the Transfer of Equity
Where you are adding a person 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 who jointly owns the premises with you?
Caveats to be read in supporting the above Swansea 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 Swansea Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in violation 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 conveyancing solicitor 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 varies based on the valuation of the property at the time of completion of the transfer of equity conveyancing.
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 lawyer 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.
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.