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The Chorley & District Building Society transfer of equity: q and a’s

  • My The Chorley & District Building Society home loan is in joint names with ex, who has agreed to be removed and let me have the property. The Chorley & District Building Society will permit the transfer of equity to me solely. Do The Chorley & District Building Society contact my boss to check my salary?
  • As things stand I have a joint The Chorley & District Building Society mortgage with my cousin and am looking into the possibility of him taking on the whole mortgage and subtracting myself from it, so as to enable me to buy somewhere with my soon-to-be-wife. The remaining mortgage is about 250k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax due?
  • How much the typical conveyancing charges are for a transfer of equity? I'm in the process of remortgaging - moving over to The Chorley & District Building Society - and have been quoted £350 plus VAT by The Chorley & District Building Society's approved lawyer, Have I been over quoted?
  • The mortgage broker has suggested using their lawyer for my Transfer of Equity plus remortgage with The Chorley & District Building Society - Is it not simpler advisable to just instruct them?
  • My ex-fiance and I are searching for an affordable conveyancing solicitor to help me sell in a transfer of equity and remortgage with The Chorley & District Building Society. I want to avoid being ripped off and there are various conveyancing firms who do transfer of equity conveyancing out there...who do I opt for?
  • My partner and I jointly own a flat in Ampthill . Mortgage is with The Chorley & District Building Society. I want to transfer full ownership to him with no passing of money but without using a lawyer. Do you think this should be easy to so?
  • How do I go about adding or removing names (transfer of equity) to or from my The Chorley & District Building Society mortgage account?

Sample of information requested in a lawyer form concerning a The Chorley & District Building Society Transfer of Equity

Is the transfer of equity subject to a court order? If yes please supply a copy

Where you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Can you give the name(s) and addresse(s) of anyone who jointly owns the premises with you?

Please inform us where you are making any payment for the Transfer of Equity and to whom and give details of the amount?

Have you approached The Chorley & District Building Society to obtain consent to the Transfer of Equity

Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Important warnings to consider in conjunction with 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

If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in violation of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made as a result of 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 lawyer 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 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 conveyancer 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.

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.


Frequently asked questions relating to The Chorley & District Building Society transfer of equity