Recently asked questions relating to The Chorley & District Building Society transfer of equity
- I recently bought a house without my fiance’s name on the ownership paperwork. My lawyer claimed it is due to the fact that she is not in the loan offer with The Chorley & District Building Society. I'm wondering is there any way that I can put her name on the title?
- Have recently separated from my partner of 18 years. I'm now living with my parents again and she wants to stay in the flat and buy me out. What portion do I get. Is it 50% of the equity after paying off the The Chorley & District Building Society home loan? I assume proper valuations are necessary but I really need ensure that I'm getting what I am entitled to
- I am in the process of remortgaging my home in Littleborough
does my lawyer have to be on the The Chorley & District Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
- My friend and I got a joint mortgage with The Chorley & District Building Society on a house a couple of years ago. I am now looking to get a apartment by myself and my friend would like to buy me out. Once we have agreed an amount what happens next? Would there be any potential concerns with The Chorley & District Building Society with him being on the hook for the total loan as opposed to only half of it?
- I got divorced in 2011. For some reason I never got around to change the ownership from both our names to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. The Chorley & District Building Society is content to transfer the full equity in my name (financial checks done). Does my ex need a conveyancer?
- Online reading suggests that solicitors are more expensive than conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I am transferring equity and at the same time switching mortgage with The Chorley & District Building Society
- I am hoping to refinance my maisonette in Rye
switching from Natwest to The Chorley & District Building Society. The apartment is jointly owned but I would like it to be in my name only as and when I transfer. My wife is OK with this and is happy to transfer equity but neither of us want to incur conveyancing solicitor fees.
Sample of information requested in a lawyer form concerning a The Chorley & District Building Society Transfer of Equity
Can you provide the name(s) and addresse(s) of those who jointly own the premises with you?
Please clarify where you are making any payment for the Transfer of Equity and to whom and disclose the amount?
Please provide a copy of your National Insurance Number?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
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” Form.
Please give the details of anyone to be removed from the property title?
Important warnings to consider in supplemental 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
If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in breach of your covenants under the lease. This could potentially result in 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 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 is dependent on the market value of the property at the conclusion of the transfer of equity transaction.
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 lawyer 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 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.
