Teachers Building Society transfer of equity: q and a’s
- Will I have to pay any fees for a Transfer of Equity where the current mortgage is with Teachers Building Society?
- I am hoping to remortgage my apartment in Rye
changing from Leeds Building Society to Teachers Building Society. The maisonette is currently in joint names but intend for it to be in my name only once I remortgage. My former partner has verbally consented to this and is willing to sign a form but neither of us want to get a second lawyer involved.
- My fiance and I have 50:50 shares in a buy to let. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity to her sole name in order mitigate tax on the letting income. Assuming Teachers Building Society are happy with this the legal fees are not high. However what happens when we dispose of the property? As I would no longer be on the deeds am I giving up my CGT relief.
- Have recently split up with my partner of 18 years. I'm now back with my mum and dad and she wishes to stay in the apartment and buy me out. What percentage am I entitled to. Is it 50% of the equity after discharging the Teachers Building Society home loan? I assume proper valuations are necessary but I would like to be sure that I'm getting the best deal
- What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Teachers Building Society?
- I own a house in Blaenavon
, with a Teachers Building Society loan with my ex husband. Him and his fiance are going to buy me out. We had the go ahead from Teachers Building Society to remove my name with hers. The transfer of equity has to be done by a lawyer for Teachers Building Society (supposedly). Can we do the Land Registry change?
- My Teachers Building Society home loan is in joint names with ex, he is agreeable to come off the deeds and put the house in my name alone. Teachers Building Society will permit the transfer of equity to my individual name. Will Teachers Building Society contact my boss to check my salary?
Examples of information requested in a conveyancing solicitor form relating to Teachers Building Society Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
If you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Have you approached Teachers Building Society to seek consent to the Transfer of Equity
Please let us know of you wish us to draft you Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
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 give the details of anyone to be removed from the title deeds?
Caveats to be read in supporting 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 premises
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in breach of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.
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 market value of the property at the conclusion of the transfer of equity conveyancing.
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 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.