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The Chorley & District Building Society

Questions and answers: The Chorley & District Building Society transfer of equity

  • I am hoping to refinance my flat in Miles Platting changing from Halifax to The Chorley & District Building Society. The maisonette is currently in joint names but propose for it to be in my name only once I transfer. My wife has agreed to this and is willing to transfer equity but neither of us want to incur conveyancing solicitor fees.
  • My current mortgage is with The Chorley & District Building Society. Can I transfer equity to someone less than 18 years old?
  • I jointly own a property in Witham , with a The Chorley & District Building Society mortgage with my ex partner. Him and his fiance are going to acquire my share. We had consent from The Chorley & District Building Society to replace my name with hers. The transfer of equity needs to be done by a conveyancer for The Chorley & District Building Society (apparently). In order to save fees can I do the Land Registry change?
  • Can I apply to borrow a further advance from The Chorley & District Building Society as part of a Transfer of Equity?
  • My The Chorley & District Building Society home loan is in joint names with ex, who is agreeable to come off the mortgage and put the house in my name alone. The Chorley & District Building Society have consented to the transfer of equity to my individual name. Do The Chorley & District Building Society get in touch with my boss to confirm my salary?
  • Is it possible to transfer the equity held in my property with my The Chorley & District Building Society mortgage?
  • My partner and I co-own a flat in Romsey . Mortgage is with The Chorley & District Building Society. I want to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Is this likely to be simple?

Information that may be required from your conveyancing solicitor could ask regarding your The Chorley & District Building Society Transfer of Equity

Is it the case that one of the registered owners passed away? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.

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

Has consent been obtained from The Chorley & District Building Society to the proposed transfer of equity?

Is the transfer of equity subject to a court order? If yes please supply a copy

We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)

General Advice to read in further to the above The Chorley & District Building Society transfer of equity Advice :

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 The Chorley & District 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 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 conveyancing solicitor will check with The Chorley & District 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 The Chorley & District 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 finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with The Chorley & District Building Society your property may be repossessed.

Preparing the Transfer of Equity with a The Chorley & District 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 The Chorley & District 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.


Frequently asked questions relating to The Chorley & District Building Society transfer of equity