Top seven questions relating to Tipton Coseley Building Society transfer of equity
- I am answering a Tipton Coseley Building Society transfer of equity request and have come to the questions regarding defaults etc. I do some debts that I have been paying off over a long period, in fact they have long since disappeared from my credit rating. Must I declare these?
- I am trying to find a conveyancing solicitor to undertake my transfer of equity. Tipton Coseley Building Society have been approached for a remortgage. I thought of asking my mortgage broker. I understand he will likely receive a referral fee for recommending someone, but also of benefit will be that he knows the lawyer, has a working relationship with them. Any flaws you see in this way of thinking?
- I currently have a joint Tipton Coseley Building Society mortgage with my cousin and am looking into the feasibility of him taking on the outstanding mortgage and extracting myself from it, to enable me to purchase a place with my fiance. The outstanding mortgage is approx 250k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax due?
- Me and a friend got a joint mortgage with Tipton Coseley Building Society on a house a couple of years ago. I am now looking to get a house by myself and my friend would like to buy me out. Once we have agreed a figure what are the next steps? Is there likely to be any concerns with Tipton Coseley Building Society with him being responsible for the total mortgage as opposed to only half of it?
- What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Tipton Coseley Building Society?
- How much the typical legal costs are for a transfer of equity? I need to transfer equity and refinance - moving over to Tipton Coseley Building Society - and have been quoted Four Hundred pounds plus VAT by Tipton Coseley Building Society's approved lawyer, Is this a reasonable price?
- How do I go about adding or subtracting names (transfer of equity) to or from my Tipton Coseley Building Society mortgage account?
Questions that your lawyer could ask about your Tipton Coseley Building Society Transfer of Equity
Has consent been obtained from Tipton Coseley Building Society to the proposed transfer of equity?
Please confirm where you are providing any payment for the Transfer of Equity and to whom and give details of the amount?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Please provide the details of anyone to be removed from the property title?
Can you provide the details of those who jointly own the premises with you?
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?
Information to consider in further to the above Tipton Coseley Building Society transfer of equity Questions and Answers :
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 Tipton Coseley Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and 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 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 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 Tipton Coseley Building Society.
Preparing the Transfer of Equity with a Tipton Coseley Building Society Mortgage
When it comes to preparing the the Land Registry documents your lawyer 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 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.