Questions and answers: West Bromwich Building Society transfer of equity

• I own a apartment in Miles Platting , with a West Bromwich Building Society loan with my ex partner. Him and his fiance are going to acquire my share. We had approval from West Bromwich Building Society to substitute my name with hers. The transfer of equity has to be done by a conveyancer for West Bromwich Building Society (apparently). Is it possible for us to do the Land Registry change?
• Last year purchased a flat without my wife's name on the title documents. My conveyancing solicitor claimed it is due to the fact that she was not in the mortgage with West Bromwich Building Society. Is it possible for me to add her name on the documents at HM Land Registry?
• What if my application doesn't meet West Bromwich Building Society lending criteria for a transfer of equity?
• My existing mortgage is with West Bromwich Building Society. Can I transfer equity to someone who is not yet 18 years old?
• I plan to refinance my apartment in Winchelsea changing from Birmingham Midshires to West Bromwich Building Society. The home is jointly owned but I would like it to be in my sole name when I transfer. My wife has agreed to this and is willing to transfer equity but neither of us want to incur conveyancing solicitor fees.
• Is it sensible to cancel my mortgage payments with West Bromwich Building Society as soon as a date for my remortgage and transfer of equity has been agreed?
• My mum passed away early last year leaving a unencumbered house to me and my brother 50:50. He has always lived in the property, there was a clause in her will saying the propertycould not be sold for three years following her death so he could reside there for a prescribed period. He now says he would like to remain in the house beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the traditional way to buy my half from me?

Questions that your lawyer may ask in relation to your West Bromwich Building Society Transfer of Equity

Important warnings to consider in in addition to the above West Bromwich Building Society transfer of equity Advice :

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 West Bromwich Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, 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 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 conveyancer will check with West Bromwich 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 West Bromwich 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 finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a West Bromwich 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 West Bromwich 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 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.