Examples of recent questions relating to The Chorley & District Building Society transfer of equity
- My wife and I have equal shares in a buy to let. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity to her sole name in order reduce our tax on the letting income. Assuming The Chorley & District Building Society are fine with this the legal fees are inexpensive. What are the implications when we dispose of the property? Would my GGT relief be lost.
- I am trying to find a conveyancing solicitor to undertake my transfer of equity. The Chorley & District Building Society have been approached for a refinancing. I considered asking my financial adviser. I am lead to believe he will likely receive a referral fee for recommending someone, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Is my logic flawed?
- Will I incur any fees for a Transfer of Equity where the existing mortgage is with The Chorley & District Building Society?
- Taking into account that we have been 5 years estranged I have decided to relinquish up my interest in our house to my husband who is refinancing with The Chorley & District Building Society. Could this transfer of equity be completed inside four weeks?
- I am planning on removing a name from a joint mortgage and the The Chorley & District Building Society need me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Winchelsea
conveyancer to deal with the transfer of equity? They need to be on the The Chorley & District Building Society conveyancing panel.
- My decree absolute has gone through as is the consent order. Now I have to deal with the transfer of equity on title deeds and the The Chorley & District Building Society home loan. I have contacted The Chorley & District Building Society for the transfer of equity forms. What are my next steps?
- What if my application doesn't meet The Chorley & District Building Society lending criteria for a transfer of equity?
Sample of questions in a lawyer form relating to The Chorley & District Building Society Transfer of Equity
Please give the details of anyone to be removed from the property title?
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Who will be responsible for the costs of the Transfer of Equity?
If 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” Form.
Can you provide the name(s) and addresse(s) of anyone who jointly owns the premises with you?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Information to consider 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 properties
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 breach of 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 situations, 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 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 is dependent on the market value of the property at finalisation of the transfer of equity conveyancing.
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 lawyer 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 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.
