Examples of recent questions relating to Yorkshire Building Society transfer of equity
- My wife and myself equally own a BTL. I am a top rate tax payer. Ideally I wish to complete a transfer of equity to her sole name with a view to reduce our tax on the letting income. Assuming Yorkshire Building Society are happy with this the legal fees are inexpensive. However what happens when we sell? Would my GGT relief be lost.
- Taking into account that we have been 2 a couple of years separated I have made the decision to transfer my share of the flat to my husband who is refinancing with Yorkshire Building Society. Could this transfer of equity be completed in one month?
- I am transferring my share of a apartment in Birmingham to the other co-owners fiance, they are reapplying to Yorkshire Building Society. We are haggling as to who must cover the costs of the transfer of equity. Is this normally shared or is one party obliged to cover the fees for?
- My brother and I got a joint mortgage with Yorkshire Building Society on a flat a couple of years ago. I am now looking to get a house by myself and my friend would like to buy me out. On the basis that we can settle on an amount what are the next steps? Is there likely to be any problem with Yorkshire Building Society with him being solely liable for the total loan as opposed to only part of it?
- Yorkshire Building Society yesterday agreed I can take over the mortgage on the flat. I previously applied for a transfer of equity but is this a transfer of ownership at the Land Registry in addition?
- What if my application doesn't meet Yorkshire Building Society lending criteria for a transfer of equity?
- Can I apply to request more money from Yorkshire Building Society as part of a Transfer of Equity?
Examples of information requested in a lawyer questionnaire concerning a Yorkshire Building Society Transfer of Equity
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?
Where you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Is there to be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what figure
Please give the details of anyone to be removed from the title deeds?
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Has consent been obtained from Yorkshire Building Society to the proposed transfer of equity?
Caveats to be read in further to the above Yorkshire 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 Yorkshire Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
If your property is leasehold, the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in violation 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 varies based on the valuation of the property at the time of completion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Yorkshire Building Society.
Preparing the Transfer of Equity with a Yorkshire 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 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.
Content 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.