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Swansea Building Society transfer of equity example support desk enquires

  • I got divorced two years ago. Foolishly I never dealt with the transfer ownership from the current 'joint' status to my sole name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Swansea Building Society is willing to transfer the property and loan in my name (financial checks done). Does my ex need any legal representation?
  • Our mortgage broker has suggested using their lawyer for the Transfer of Equity plus remortgage with Swansea Building Society - won’t it be advisable to just instruct them?
  • I already have a mortgage with Swansea Building Society and am keeping my current mortgaging but applying to have have the equity transferred to my sole name so my ex won't be on it any longer. How long can it take for the paperwork to be processed?
  • I currently have a joint Swansea Building Society mortgage with my brother and am investigating the feasibility of him taking on the outstanding mortgage and extracting myself from it, so as to enable me to purchase a property with my soon-to-be-wife. The outstanding mortgage is approx 300k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax payable?
  • I recently bought a flat without my wife's name on the ownership paperwork. My conveyancer advised it is because she was not in the mortgage with Swansea Building Society. I'm wondering is there any way that I can put her name on the documents at HM Land Registry?
  • Taking into account that we have been 3 years apart I have opted to give up my share of the apartment to my husband who is re-mortgaging with Swansea Building Society. Can a transfer of equity be completed inside 28 days?
  • My fiance and myself have 50:50 shares in a buy to let. I am a top rate tax payer. Ideally I wish to do a transfer of equity into her name to reduce our tax on the letting income. If Swansea Building Society are happy with this the legal fees are not high. However what happens when we sell? As I would no longer be on the deeds am I giving up my CGT relief.

Information that may be required from your lawyer may ask about your Swansea Building Society Transfer of Equity

We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)

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

Where you 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?

Please provide the name(s) and addresse(s) of anyone who jointly owns the premises with you?

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

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” Form.

Important warnings to consider in further to the above Swansea Building Society transfer of equity information :

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 properties

If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not complied with you may be in violation of the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 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 is dependent on the market value of the property at finalisation of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Swansea Building Society.

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 conveyancer 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 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