Questions and answers: Teachers Building Society transfer of equity

• I am trying to find a conveyancing solicitor to undertake my transfer of equity. Teachers Building Society are dealing with the remortgage. I thought of asking my financial adviser. I am lead to believe he will likely receive a kickback for suggesting someone, but also of benefit will be that he knows the lawyer, has a working relationship with them. Is my logic correct?
• I am planning on removing a name from a joint mortgage and the Teachers Building Society require me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Romsey lawyer to deal with the transfer of equity? They need to be on the Teachers Building Society conveyancing panel.
• I purchased a flat with my cousin six years ago Since then, we have both got married. We are now intending to do a transfer of equity so my name is removed the Teachers Building Society mortgage. There is a meaningful difference between the value the bank hold and what the property would sell for currently. Can you offer any advice?
• What are the average conveyancing costs are for a transfer of equity? I need to transfer equity and refinance - new loan with Teachers Building Society - and have been quoted £350 excluding VAT by Teachers Building Society's appointed conveyancer, Is this is a good price or not?
• Teachers Building Society have today agreed I can take over the home loan on my home. I have applied for a transfer of equity but is this a transfer of ownership of the house on top?
• At what point do I pay stamp duty due for the transfer of equity in my property in my sole name which is taking place at the same time as a switching mortgage via Teachers Building Society?
• I am answering a Teachers Building Society transfer of equity form and have come to the part concerning debts etc. There are some debts that I have been paying off since 2009, I understand that they have long since disappeared from my credit records. Must I set these out?

Examples of information requested in a conveyancing solicitor questionnaire relating to Teachers Building Society Transfer of Equity

Information to consider in in addition to the above Teachers Building Society transfer of equity Info :

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 Teachers Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in violation of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 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 time of completion of the transfer of equity transaction.

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.