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Teachers Building Society

Recently asked questions relating to Teachers Building Society transfer of equity

  • What if my application doesn't meet Teachers Building Society lending criteria for a transfer of equity?
  • Me and my partner co-own a property in Blaenavon . Mortgage is with Teachers Building Society. I want to transfer full ownership to him with no payment of money but without using a lawyer. Is this likely to be straightforward?
  • What are the average conveyancing fees are for a transfer of equity? I need to transfer equity and refinance - moving over to Teachers Building Society - and have been quoted Four Hundred pounds including VAT by Teachers Building Society's approved conveyancing solicitor, Is this a reasonable price?
  • My mortgage broker has recommended their lawyer for our Transfer of Equity plus remortgage with Teachers Building Society - Surely it’s easier to just instruct them?
  • Me and a friend got a joint mortgage with Teachers Building Society on a property in 2013. I am now thinking of purchasing a flat on my own and my friend would like to buy me out. Assuming we can agree a figure what are the next steps? Would there be any potential problem with Teachers Building Society with him being responsible for the total loan as opposed to only half of it?
  • My dad died half a year ago leaving a mortgage-free semi to me and my brother equally. He has always lived in the premises, there was a condition in her will saying the housecould not be sold for 24 months after her death so he could reside there for a prescribed period. He now wishes to remain in the property beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the traditional way to acquire my equity?
  • Have recently separated from my ex of twenty years. I'm now back with my mum and dad and she wishes to stay in the flat and buy me out. What portion am I entitled to. Is it 50% of the equity after redeeming the mortgage with Teachers Building Society? I assume proper valuations are necessary but I would like to be confident that I'm getting I am not being walked over

Questions that your lawyer is likely to ask regarding your Teachers Building Society Transfer of Equity

If you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?

Please provide a copy of your National Insurance Number?

Would you like us to prepare Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?

Can you give the name(s) and addresse(s) of those who jointly own the premises with you?

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 premises

Should the tenure of your property be leasehold, 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 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 cases, 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 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 conveyancing solicitor 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 lawyer 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.


Frequently asked questions relating to Teachers Building Society transfer of equity