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Teachers Building Society

Questions and answers: Teachers Building Society transfer of equity

  • I am in the process of mortgaging my home in Witham does my lawyer need to be on the Teachers Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
  • What is the process for having someone removed off the title documents to a house if the mortgage is with Teachers Building Society
  • Is it sensible to stop the direct debit for my mortgage with Teachers Building Society once a date for my remortgage and transfer of equity has been set?
  • How and when do I pay the Stamp Duty Land Tax payable for the transfer of equity in my house in my name alone which is happening simultaneously with a switching mortgage via Teachers Building Society?
  • My Teachers Building Society home loan is in joint names with ex, he is agreeable to be removed and put the house in my name alone. Teachers Building Society have consented to the transfer of equity to my individual name. Will Teachers Building Society contact my company to check my salary?
  • As things stand I have a joint Teachers Building Society mortgage with my brother and am investigating the option of him taking on the outstanding mortgage and subtracting myself from it, so as to enable me to purchase a place with my fiance. The remaining mortgage is approx 250k, and the property value is about 450k. Is this a transfer of equity? Is stamp duty payable?
  • What are my options where I am unhappy with the conveyancer who handled our transfer of equity conveyancing?

Information that may be required from your conveyancer may ask regarding your Teachers Building Society Transfer of Equity

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

Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

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

Please provide the details of anyone to be removed from the property title?

Have you approached Teachers Building Society to seek consent to the Transfer of Equity

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?

Important warnings to consider in conjunction with the above Teachers 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 Teachers Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed 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 Teachers 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 Teachers 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 conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Teachers Building Society your property may be repossessed.

Preparing the Transfer of Equity with a Teachers 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 Teachers 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 conveyancing solicitor 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 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.


Frequently asked questions relating to Teachers Building Society transfer of equity