Frequently asked questions relating to Tipton Coseley Building Society transfer of equity

• As things stand I have a joint Tipton Coseley Building Society mortgage with my cousin and am investigating the possibility of him assuming responsibility for the outstanding mortgage and extracting myself from it, to enable me to purchase somewhere with my partner. The remaining mortgage is in the region 200k, and the property value is in the region 500k. Is this a transfer of equity? Is stamp duty involved?
• Is there such a thing a transfer of equity stamp duty calculator?
• Our financial adviser has suggested using their conveyancer for the Transfer of Equity plus remortgage with Tipton Coseley Building Society - Surely it’s better to just instruct them?
• Can you tell me how to have a person removed from the title documents to a house if the home loan is with Tipton Coseley Building Society
• I am in the process of refinancing my home in Friern Barnet does my lawyer have to be on the Tipton Coseley Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
• I got my Decree Absolute in 2012. For some reason I never got around to transfer 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 needed. Tipton Coseley Building Society is happy to transfer the property and loan in my name (financial checks done). Does she need a lawyer?
• My mother died seven months ago leaving a unencumbered bungalow to me and my half brother equally. He has always lived in the house, there was a clause in her will saying the premisescould not be sold for 24 months after her death so he could continue to live there for a specified time frame. He now wants to remain in the house beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the conventional way to acquire my half from me?

Information that may be required from your conveyancer may ask about your Tipton Coseley Building Society Transfer of Equity

Caveats to be read in supplemental the above Tipton Coseley Building Society transfer of equity information :

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 Tipton Coseley Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such terms are not adhered to you may be in breach 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 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 lawyer will check with Tipton Coseley 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 Tipton Coseley 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 the time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Tipton Coseley 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 Tipton Coseley 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 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.