Common questions relating to Swansea Building Society transfer of equity
- My father passed away seven months ago leaving a loan-free bungalow to me and my half brother 50:50. He has always lived in the premises, there was a clause in the will saying the premisescould not be sold for three years following her passing so he could continue to live there for a prescribed period. He now wishes to remain in the premises 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 traditional way to purchase my share?
- I plan to refinance my maisonette in Blaenavon
changing from Halifax to Swansea Building Society. The home is currently in joint names but propose for it to be in my name only when I remortgage. My former partner is OK with this and is willing to sign a form but neither of us want to incur conveyancer fees.
- I am led to believe we would need at least AP1 and TR1. Is this true?
- Our mortgage broker has suggested using their conveyancer for the Transfer of Equity plus remortgage with Swansea Building Society - Is it not simpler easier to just instruct them?
- I already have a home loan with Swansea Building Society and am maintaining my existing mortgaging but seeking to have it in my name only so my former partner won't be on it any longer. How long does the whole transfer of equity process take?
- Can you tell me how to have a person removed from the title documents to a house if the home loan is with Swansea Building Society
- I bought a flat with my brother in 2009 Since purchasing the property, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Swansea Building Society mortgage. There is a significant difference between the value the mortgage company hold and what the property would sell for currently. Can you offer any advice?
Sample of information requested in a conveyancer questionnaire concerning a Swansea Building Society Transfer of Equity
If you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please give the details of anyone to be extracted from the property title?
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Please let us know where you are providing any payment for the Transfer of Equity and to whom and specify any such sums?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Has one of the registered proprietors passed away? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Information to consider in conjunction with the above Swansea Building Society transfer of equity Advice :
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, 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 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 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 valuation 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 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 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.