Frequently asked questions relating to Yorkshire Building Society transfer of equity
- I am selling my share of a house in Birmingham to my co-owners fiance, they are sticking with Yorkshire Building Society as the the existing mortgage company. We are debating as to who must pay the costs of the transfer of equity. Is this usually shared or is one party obliged to cover the costs of?
- My Yorkshire Building Society mortgage we jointly entered into with ex, he has agreed to come off the deeds and put the house in my name alone. Yorkshire Building Society have consented to the transfer of equity to me solely. Will Yorkshire Building Society contact my employer to check my salary?
- Is there such a thing a transfer of equity stamp duty calculator?
- I am planning on removing a name from a joint mortgage and the Yorkshire Building Society need me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Witham
conveyancer to deal with the transfer of equity? They need to be on the Yorkshire Building Society conveyancing panel.
- My father died seven months ago leaving a unencumbered semi to me and my brother 50:50. Having continues to reside at the property, there was a condition in her will specifying that the propertycould not be sold for three years following her death so he could reside there for a prescribed period. He now wishes to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the usual way to acquire my share?
- I am am in need of a conveyancing solicitor to deal with my transfer of equity. Yorkshire Building Society are dealing with the refinancing. I considered asking my mortgage broker. I understand he may receive a kickback for suggesting a firm, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Is my logic misguided?
- I am hoping to refinance my flat in Blaenavon
switching from Chelsea BS to Yorkshire Building Society. The flat is currently in joint names but wish for it to be in my sole name when I remortgage. My wife is OK with this and is happy to sign a form but neither of us want to get a second lawyer involved.
Sample of information requested in a lawyer questionnaire concerning a Yorkshire Building Society Transfer of Equity
Have you approached Yorkshire Building Society to seek consent to the Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
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 confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
If you are adding a person 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.
Information to consider in in addition to the above Yorkshire Building Society transfer of equity Info :
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 require that you have a license to do so from the landlord. If such restrictions are not strictly observed 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 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 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 finalisation 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 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.