Common questions relating to Teachers Building Society transfer of equity

• I already have a mortgage with Teachers Building Society and am retaining my existing mortgaging but wish to have it in my name only so my former partner will come off the title. How long can it take for the paperwork to be processed?
• Given that we have been three years separated I have decided to transfer my interest in our former home to my husband who is re-mortgaging with Teachers Building Society. Can a transfer of equity be done within four weeks?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Teachers Building Society?
• What are the average legal fees are for a transfer of equity? I need to transfer equity and remortgage - moving over to Teachers Building Society - and have been quoted £250 plus VAT by Teachers Building Society's approved conveyancing solicitor, Is this a reasonable price?
• Law month I split up with my ex of 18 years. I'm now living with my mum and dad and she wishes to stay in the apartment and pay me off. What percentage do I get. Is it 50% of the equity after redeeming the Teachers Building Society home loan? I assume proper valuations are necessary but I really need to be confident that I'm getting what I am entitled to
• Me and my former partner and I are are looking to find an affordable conveyancing lawyer to help me sell in a transfer of equity and remortgage with Teachers Building Society. I I am concerned about by bill escalating out of control and there's so many conveyancing firms who do transfer of equity conveyancing to pick from...who do I opt for?
• My wife and I jointly own a investment property. I am a top rate tax payer. Preferably I wish to complete a transfer of equity to her sole name in order reduce our tax on rental income. Assuming Teachers Building Society are content with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the title documents would I lose my CGT relief.

Questions that your lawyer may ask about your Teachers Building Society Transfer of Equity

Caveats to be read in supplemental the above Teachers 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 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 have a license to do so from the freeholder. If such conditions are not complied with you may be in violation of your covenants under the lease. This could potentially result in 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 lawyer 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 varies based on the valuation of the property at the time of completion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Teachers Building Society Mortgage

When it comes to preparing the the Land Registry documents your lawyer 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.

Content 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.