Frequently asked questions relating to The Chorley & District Building Society transfer of equity
- I am answering 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 paying off since 2009, in fact they no longer remain my credit records. Do I need to set these out?
- I purchased a property with my brother in 2009 Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name comes off the The Chorley & District Building Society mortgage. There is a significant difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- My partner and myself equally own a buy to let. I am a top rate tax payer. Ideally I wish to complete a transfer of equity to her sole name to reduce our tax on the letting income. If The Chorley & District Building Society are happy with this the legal fees are not prohibitive. However what happens when we dispose of the property? Would my GGT relief be lost.
- Our mortgage broker has recommended their conveyancing solicitor for our Transfer of Equity plus remortgage with The Chorley & District Building Society - won’t it be advisable to just use them?
- I am selling my equity in flat in Hendon to my co-owners husband, they are sticking with The Chorley & District Building Society being the the existing lender. We are in heated discussion as to who must pay the fees for the transfer of equity. Should this be split or is one party liable for the costs of?
- Can you tell me how to have a person removed from the deeds to a house if the home loan is with The Chorley & District Building Society
- I intend to remortgage my apartment in Blaenavon
moving from Birmingham Midshires to The Chorley & District Building Society. The apartment is jointly owned but wish for it to be in my sole name as and when I transfer. My former partner has verbally consented to this and is willing to transfer equity but neither of us want to incur conveyancing solicitor fees.
Sample of questions in a conveyancer form concerning a The Chorley & District Building Society Transfer of Equity
Please list all persons who occupy the property, their respective ages and relationships to you.
Please inform us if you are providing any payment for the Transfer of Equity and to whom and give details of any such sums?
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Please provide the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Important warnings to consider in supporting 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 titles
Should the tenure of your property be leasehold, 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.
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 varies based on the valuation of the property at the conclusion 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 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.