Top seven questions relating to Yorkshire Building Society transfer of equity
- Given that we have been 2 a couple of years apart I have opted to give up my interest in our former home to my husband who is refinancing with Yorkshire Building Society. Can a transfer of equity be completed inside 28 days?
- My existing home loan is with Yorkshire Building Society. Can I transfer equity to someone less than 18 years old?
- I own a flat in Crabtree
, with a Yorkshire Building Society loan with my ex partner. Him and his new partner are going to buy me out. We had approval from Yorkshire Building Society to remove my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Yorkshire Building Society (supposedly). In order to save fees can I deal with the Land Registry formalities?
- I am disposing of my share of a property in Woodside to the other co-owners husband, they are sticking with Yorkshire Building Society as the the existing lender. We are debating as to who must cover the costs of the transfer of equity. Should this be shared or is one of us obliged to cover the fees for?
- My Yorkshire Building Society mortgage we jointly entered into with ex, who is agreeable to be removed and put the house in my name alone. Yorkshire Building Society will permit the transfer of equity to my individual name. Will Yorkshire Building Society write my company to confirm my salary?
- I am planning on removing a name from a joint mortgage and the Yorkshire Building Society require me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Blaenavon
conveyancer to deal with the transfer of equity? They need to be on the Yorkshire Building Society conveyancing panel.
- My mum died half a year ago leaving a mortgage-free bungalow to me and my step brother equally. He has always lived in the house, there was a condition in her will specifying that the premisescould not be sold for 24 months following her death so he could continue to live there for a specified time frame. He now wishes to remain in the house beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the usual way to acquire my share?
Information that may be required from your lawyer may ask in relation to your Yorkshire Building Society Transfer of Equity
Has one of the registered owners died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
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 provide the details of anyone to be added to the title deeds?
Would you like us to draft you Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
Will there be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Who will be responsible for the costs of the Transfer of Equity?
Important warnings to consider in further to the above Yorkshire Building Society transfer of equity information :
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, provisions in 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 the lease. This could potentially result in the freeholder taking enforcement action against you.
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 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 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.