Common questions relating to Tipton Coseley Building Society transfer of equity
- My partner and I have 50:50 shares in a investment property. I am a top rate tax payer. Preferably I would like to do a transfer of equity into her name to mitigate tax on the letting income. Assuming Tipton Coseley Building Society are happy with this the legal fees are not prohibitive. However what happens when we sell? As I would no longer be on the title documents am I giving up my CGT relief.
- My mum passed away half a year ago leaving a loan-free semi to me and my step brother 50:50. Having continues to reside at the premises, there was a clause in the will specifying that the housecould not be sold for three years after her death so he could reside there for a while. He now wants to remain in the property beyond the specified period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the traditional way to buy my equity?
- Me and a friend got a joint mortgage with Tipton Coseley Building Society on a flat about a year ago. I am now looking to get a apartment on my own and my friend would like to buy me out. On the basis that we can settle on a price where do we go? Would there be any potential issue with Tipton Coseley Building Society with him being responsible for the total loan rather than only part of it?
- Is it possible to transfer the equity held in my property with my Tipton Coseley Building Society home loan?
- I am considering mortgaging my home in Crabtree
does my lawyer have to be on the Tipton Coseley Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
- My Tipton Coseley Building Society mortgage we jointly entered into with ex, he has agreed to come off the mortgage and let me have the property. Tipton Coseley Building Society have consented to the transfer of equity to my individual name. Do Tipton Coseley Building Society write my company to confirm my salary?
- What are my options where I am unhappy with the conveyancing solicitor who did my transfer of equity transaction?
Examples of questions in a conveyancing solicitor form relating to Tipton Coseley Building Society Transfer of Equity
Can you give the name(s) and addresse(s) of those who jointly own the premises with you?
Please confirm where you are making any payment for the Transfer of Equity and to whom and specify the amount?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
If 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?
Who will be responsible for the costs of the Transfer of Equity?
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Caveats to be read in in addition to the above Tipton Coseley 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 Tipton Coseley Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in violation of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
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 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 varies based 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 Tipton Coseley Building Society your property may be repossessed.
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 conveyancing solicitor 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.