Frequently asked questions relating to Teachers Building Society transfer of equity
- What is the process for adding or removing names (transfer of equity) to or from my Teachers Building Society mortgage account?
- My ex-wife and I are are seeking to find a trustworthy conveyancing lawyer to help me sell in a transfer of equity and refinance with Teachers Building Society. I I am concerned about appointing the wrong one but with many conveyancing organisations who do transfer of equity conveyancing to choose from...how do I know which is best appoint?
- I am am in need of a conveyancer to undertake my transfer of equity. Teachers Building Society are dealing with the remortgage. I considered asking my mortgage broker. I am lead to believe he will likely receive a kickback for recommending a firm, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Any flaws you see in this way of thinking?
- My former wife are seeking to get a conveyancing solicitor in place for a remortgage with Teachers Building Society. Transfer of Equity conveyancing is also requiredI have used the different rating based services and the results are from all over the country. Do we need to instruct a conveyancing solicitor local to us?
- I am disposing of my equity in property in Birmingham to my co-owners husband, they are sticking with Teachers Building Society as the the existing mortgage company. We are in heated discussion as to who should cover the fees for the transfer of equity. Is this normally split or is one of us liable for the fees for?
- When it comes to transfer of equity conveyancing involving a remortgage with Teachers Building Society should I be charged value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
Questions that your conveyancing solicitor is likely to ask about your Teachers Building Society Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Please provide a copy of your National Insurance Number?
Please give the name(s) and addresse(s) of anyone to be extracted from the property title?
Will there be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what amounts
Where you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please list all persons who occupy the property, their respective ages and relationships to you.
Caveats to be read in further to the above Teachers Building Society transfer of equity Advice :
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
Should the tenure of your property be 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 trigger the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to 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 conveyancer 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 market value of the property at the time of completion 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information provided on 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.