The Chorley & District Building Society transfer of equity: q and a’s
- Me and a friend got a joint mortgage with The Chorley & District Building Society on a flat about a year ago. I am now looking to get a property by myself and my friend would like to buy me out. On the basis that we can settle on a price what happens next? Is there likely to be any concerns with The Chorley & District Building Society with him being on the hook for the total mortgage rather than only part of it?
- What if my application doesn't meet The Chorley & District Building Society lending criteria for a transfer of equity?
- The Chorley & District Building Society have just 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 at the Land Registry in addition?
- I am transferring my share of a house in Hendon to my co-owners husband, they are sticking with The Chorley & District Building Society as the the existing lender. We are in heated discussion as to who should pay the costs of the transfer of equity. Should this be split or is one party liable for the legal bill?
- I am completing a The Chorley & District Building Society transfer of equity request and have come to the questions concerning defaults etc. I do some debts that I have been discharging for a number of years, in fact they no longer remain my credit score. Am I obliged to set these out?
- My former wife are seeking to get a lawyer in place for a remortgage with The Chorley & District Building Society. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over UK. Do we need to have a conveyancing solicitor local to us?
- I am am in need of a conveyancing solicitor to handle my transfer of equity. The Chorley & District Building Society are dealing with the refinancing. I thought of asking my financial adviser. I understand he may get a kickback for recommending a firm, but also of benefit will be that he knows the conveyancer, has dealt with them before. Any flaws you see in this way of thinking?
Questions that your lawyer could ask in relation to your The Chorley & District Building Society Transfer of Equity
Please let us know of you wish us to draft you Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
Who will be responsible for the costs of the Transfer of Equity?
Please give the name(s) and addresse(s) of those who jointly own the premises with you?
Has one of the registered owners passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please give the name(s) and addresse(s) of anyone to be removed from the property title?
Please clarify if you are providing any payment for the Transfer of Equity and to whom and notify us any such sums?
General Advice to read in conjunction with the above The Chorley & District 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 The Chorley & District 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 obtain the consent of the freeholder. If such terms are not adhered to you may be in breach 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 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 transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with The Chorley & District Building Society.
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 conveyancing solicitor 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 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.