Questions and answers: Yorkshire Building Society transfer of equity

• Will I incur any charges for a Transfer of Equity where the current mortgage is with Yorkshire Building Society?
• At what point do I pay the Stamp Duty Land Tax due for the transfer of equity in my house in my name alone which is happening at the same time as a remortgage via Yorkshire Building Society?
• I recently purchased a house without my fiance’s name on the deeds. My lawyer said it is due to the fact that she is not in the mortgage with Yorkshire Building Society. Is it possible for me to add her name on the deeds?
• My decree absolute is through as is the consent order. Now I have to deal with the transfer of equity on title deeds and the Yorkshire Building Society mortgage. I have asked Yorkshire Building Society for the transfer of equity forms. What are my next steps?
• I already have a mortgage with Yorkshire Building Society and am keeping my existing mortgaging but applying to have it in my name alone so my ex will be removed from the mortgage. How long do Yorkshire Building Society take to deal with the application?
• My partner and myself have equal shares in a investment property. 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 rental income. Assuming Yorkshire 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.
• Do I need legal advice when doing a transfer of equity where the mortgage is to remain with Yorkshire Building Society?

Information that may be required from your conveyancing solicitor is likely to ask about your Yorkshire Building Society Transfer of Equity

Information to consider 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 properties

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in violation of 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 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 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 varies based on the valuation 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 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 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.