Sample questions relating to The Chorley & District Building Society transfer of equity
- I already have a home loan with The Chorley & District Building Society and am maintaining my existing mortgaging but applying to have it in my name alone so my ex won't be on it any longer. How long do The Chorley & District Building Society take to deal with the application?
- Will I have to pay any charges for a Transfer of Equity where the existing home loan is with The Chorley & District Building Society?
- I recently bought a property without my wife's name on the title. My lawyer advised it is because she was not in the mortgage with The Chorley & District Building Society. I'm wondering is there any way that I can add her name on the documents at HMLR?
- I own a flat in Wakefield
, with a The Chorley & District Building Society loan with my ex partner. He 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 completed by a conveyancing solicitor for The Chorley & District Building Society (supposedly). Can we do the Land Registry formalities?
- I got divorced in 2010. I simply never got around to change the ownership from both our names to my sole 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 property and loan in my name (affordability checks done). Does my ex need a lawyer?
- The financial adviser has recommended their conveyancing solicitor for my Transfer of Equity plus remortgage with The Chorley & District Building Society - Is it not simpler better to just instruct them?
- My current home loan is with The Chorley & District Building Society. Can I transfer equity to someone under 18 years old?
Sample of questions in a conveyancing solicitor questionnaire concerning a The Chorley & District Building Society Transfer of Equity
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
Who will be responsible for the costs of the Transfer of Equity?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Where you 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?
Has consent been obtained from The Chorley & District Building Society to the proposed transfer of equity?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Caveats to be read in supplemental the above The Chorley & District Building Society transfer of equity Advice :
Tax and Legal
There are numerous potential 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 premises
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of the lease. This could potentially result in 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 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 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 conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Content 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.