Questions and answers: West Bromwich Building Society transfer of equity

• My West Bromwich Building Society mortgage is in joint names with ex, who has agreed to come off the mortgage and let me have the property. West Bromwich Building Society will permit the transfer of equity to my individual name. Will West Bromwich Building Society get in touch with my boss to verify my salary?
• When it comes to transfer of equity conveyancing involving a remortgage with West Bromwich Building Society should I be paying value added tax on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
• Have recently split up with my wife of 18 years. I'm now living with my mum and dad and she wants to remain in the property and pay me off. What portion do I get. Is it 50% of the equity after redeeming the mortgage with West Bromwich Building Society? I assume proper valuations are necessary but I really need to be confident that I'm getting what I am entitled to
• My wife and I have 50:50 shares in a buy to let. I am a top rate tax payer. Preferably I would like to do a transfer of equity to her sole name in order mitigate tax on the letting income. Assuming West Bromwich Building Society are fine with this the legal fees are not high. What are the implications when we sell? As I would no longer be on the deeds would I lose my CGT relief.
• Am I best advised stop the direct debit for my mortgage with West Bromwich Building Society as soon as a date for my remortgage and transfer of equity has been set?
• What if my application doesn't meet West Bromwich Building Society lending criteria for a transfer of equity?
• Will I incur any fees for a Transfer of Equity where the existing mortgage is with West Bromwich Building Society?

Examples of questions in a conveyancing solicitor questionnaire relating to West Bromwich Building Society Transfer of Equity

Information to consider in supporting the above West Bromwich 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 West Bromwich Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not complied with you may be in breach of your covenants under the lease. This could potentially result in 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 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 conveyancing solicitor 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 is dependent on the valuation of the property at the time of completion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a West Bromwich 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 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 lawyer 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.