Frequently asked questions relating to Swansea Building Society transfer of equity
- I am looking for a conveyancer to undertake my transfer of equity. Swansea Building Society are dealing with the remortgage. I considered asking my financial adviser. I am lead to believe he may get a referral fee for recommending a firm, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Any flaws you see in this way of thinking?
- I am completing a Swansea Building Society transfer of equity application and have arrived at the part concerning debts etc. There are some debts that I have been paying off over a long period, I understand that they no longer remain my credit rating. Do I need to set these out?
- Is it sensible to cancel my mortgage payments with Swansea Building Society as soon as a date for my remortgage and transfer of equity has been set?
- Have recently separated from my ex of twenty years. I'm now living with my parents again and she wishes to remain in the property and pay me off. What portion do I get. Is it 50% of the equity after paying off the mortgage with Swansea Building Society? I assume proper valuations are necessary but I really need to be sure that I'm getting I am not being walked over
- The mortgage broker has recommended their conveyancing solicitor for the Transfer of Equity plus remortgage with Swansea Building Society - won’t it be better to just use them?
- I currently have a joint Swansea Building Society mortgage with my cousin and am looking into the feasibility of him taking on the outstanding mortgage and subtracting myself from it, to enable me to buy a place with my fiance. The remaining mortgage is about 200k, and the property value is in the region 500k. Is this a transfer of equity? Is stamp duty involved?
- What should I be budgeting for when it comes to what solicitors costs are for a transfer of equity? I'm in the process of remortgaging - moving over to Swansea Building Society - and have been quoted Three Hundred pounds excluding VAT by Swansea Building Society's appointed lawyer, Is this a reasonable price?
Examples of information requested in a conveyancing solicitor form concerning a Swansea Building Society Transfer of Equity
Please give the details of anyone to be removed from the title deeds?
Has consent been obtained from Swansea Building Society to the proposed transfer of equity?
Is it the case that one of the registered proprietors died? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
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 the same
Is the transfer of equity subject to a court order? If yes please supply a copy
Important warnings to consider in in addition to the above Swansea Building Society transfer of equity Info :
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
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not complied with 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 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 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 conveyancer 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 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.