Frequently asked questions relating to Yorkshire Building Society transfer of equity

• Our mortgage broker has suggested using their lawyer for our Transfer of Equity plus remortgage with Yorkshire Building Society - Surely it’s better to just use them?
• What if my application doesn't meet Yorkshire Building Society lending criteria for a transfer of equity?
• Am I best advised stop my mortgage payments with Yorkshire Building Society once a date for my remortgage and transfer of equity has been set?
• My Yorkshire Building Society home loan we jointly entered into with ex, he has agreed to come off the deeds and let me have the property. Yorkshire Building Society have consented to the transfer of equity to me solely. Will Yorkshire Building Society write my boss to verify my salary?
• At what stage do I cover the costs of stamp duty due for the transfer of equity in my home in my name alone which is taking place at the same time as a refinancing with Yorkshire Building Society?
• I am hoping to remortgage my flat in Rye changing from Virgin Money to Yorkshire Building Society. The flat is jointly owned but I would like it to be in my sole name when I transfer. My former partner has agreed to this and is willing to sign a form but neither of us want to incur conveyancer fees.
• Law month I split up with my wife of 18 years. I'm now living with my parents again and she wishes to stay in the flat and pay me off. What portion am I entitled to. Is it half of the equity after paying off the Yorkshire Building Society home loan? I assume proper valuations are required but I would like ensure that I'm getting the best deal

Information that may be required from your lawyer could ask in relation to your Yorkshire Building Society Transfer of Equity

General Advice to read in conjunction with the above Yorkshire Building Society transfer of equity Advice :

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 Yorkshire 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 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 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 lawyer 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 market value of the property at the conclusion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Yorkshire 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 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 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.