Recently asked questions relating to Teachers Building Society transfer of equity

• Can you tell me how to have someone removed off the title documents to a house where the home loan is with Teachers Building Society
• The mortgage broker has suggested using their lawyer for my Transfer of Equity plus remortgage with Teachers Building Society - won’t it be advisable to just use them?
• I am transferring my equity in flat in Birmingham to my co-owners fiance, they are sticking with Teachers Building Society being the the existing lender. We are debating as to who should pay the costs of the transfer of equity. Is this normally split or is one party obliged to cover the charges for?
• What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my Teachers Building Society mortgage account?
• I jointly own a apartment in Sedgefield , with a Teachers Building Society loan with my ex partner. Him and his fiance are going to acquire my share. We had approval from Teachers Building Society to substitute my name with hers. The transfer of equity has to be completed by a conveyancer for Teachers Building Society (apparently). Is it possible for us to do the Land Registry formalities?
• My mum passed away half a year ago leaving a loan-free house to me and my brother 50:50. He has always lived in the house, there was a provision in the will saying the propertycould not be sold for 24 months following her death so he could remain there for a prescribed period. He now wishes to remain in the house beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the conventional way to acquire my equity?
• What are the average conveyancing charges are for a transfer of equity? I'm in the process of remortgaging - new loan with Teachers Building Society - and have been quoted Four Hundred pounds excluding VAT by Teachers Building Society's appointed conveyancer, Have I been over quoted?

Sample of questions in a conveyancer form concerning a Teachers Building Society Transfer of Equity

Caveats to be read in conjunction with the above Teachers Building Society transfer of equity Questions and Answers :

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 titles

Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. If such restrictions 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 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 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 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 conveyancer 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.