Questions and answers: Yorkshire Building Society transfer of equity
- Me and my partner jointly own a property in Littleborough
. Home loan is with Yorkshire Building Society. I would like to transfer full ownership to him with no passing of money but without using a lawyer. Do you think this should be simple?
- My decree absolute has gone through as is the consent order. Now I must sort out the transfer of equity at the HMLR and the Yorkshire Building Society home loan. I have called Yorkshire Building Society for the transfer of equity application. What do I do now?
- I intend to refinance my home in Blaenavon
changing from Barclays to Yorkshire Building Society. The maisonette is currently in joint names but I would like it to be in my name only when I remortgage. My wife is OK with this and is willing to sign a form but neither of us want to get a second lawyer involved.
- Me and a friend got a joint mortgage with Yorkshire Building Society on a apartment a couple of years ago. I am now thinking of buying a flat 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 problem with Yorkshire Building Society with him being responsible for the total mortgage rather than only half of it?
- Been looking at online blogs that solicitors are more expensive than conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I need to be transferring equity and simultaneously remortgaging with Yorkshire Building Society
- Is it possible to transfer the equity held in my property with my Yorkshire Building Society mortgage?
- I own a apartment in Littleborough
, with a Yorkshire Building Society mortgage with my ex husband. Him and his new partner are going to acquire my share. We had approval from Yorkshire Building Society to substitute my name with hers. The transfer of equity needs to be done by a lawyer for Yorkshire Building Society (supposedly). Can we deal with the Land Registry change?
Sample of information requested in a lawyer form concerning a Yorkshire Building Society Transfer of Equity
Where you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Who will be responsible for the costs of the Transfer of Equity?
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?
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Important warnings to consider in conjunction with the above Yorkshire 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 Yorkshire Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
Should the tenure of your property be leasehold, 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 your covenants under the lease. This could potentially result in 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 conveyancer will check with Yorkshire 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 Yorkshire 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 transaction.
If you do not keep up the payments on your mortgage with Yorkshire Building Society your property may be repossessed.
Preparing the Transfer of Equity with a Yorkshire Building Society Mortgage
When it comes to preparing the the Land Registry documents your conveyancing solicitor should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.
If Yorkshire 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.