Frequently asked questions relating to Yorkshire Building Society transfer of equity
- Have recently split up with my wife of thirty years. I'm now living with my parents again and she wishes to remain in the apartment and buy me out. What percentage do I get. Is it 50% 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 what I am entitled to
- I intend to refinance my home in Blaenavon
moving from RBS to Yorkshire Building Society. The home is currently in joint names but propose for it to be in my name only as and when I transfer. My wife has agreed to this and is happy to transfer equity but neither of us want to get a second conveyancing solicitor involved.
- I bought a house with my brother five.seven years ago Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the Yorkshire Building Society mortgage. There is a 30k difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
- I recently purchased a property without my fiance’s name on the title documents. My conveyancer said it is because she is not in the mortgage with Yorkshire Building Society. Is it possible for me to put her name on the title?
- Can I apply to request a further advance from Yorkshire Building Society as part of a Transfer of Equity?
- My fiance and myself have 50:50 shares in a BTL. I am a higher rate tax payer. Preferably I wish to do a transfer of equity into her name with a view to reduce our tax on the letting income. Assuming Yorkshire Building Society are happy with this the legal fees are not high. What are the implications when we dispose of the property? Would my GGT relief be lost.
- As things stand I have a joint Yorkshire Building Society mortgage with my step-brother and am looking into the option of him taking on the outstanding mortgage and extracting myself from it, so as to enable me to buy a place with my partner. The remaining mortgage is approx 300k, and the property value is about 450k. Is this a transfer of equity? Is stamp duty payable?
Questions that your conveyancer could ask about your Yorkshire Building Society Transfer of Equity
Can you provide the name(s) and addresse(s) of those who jointly own the property with you?
Please confirm where you are making any payment for the Transfer of Equity and to whom and disclose the amount?
Where 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.
Would you like us to draw up a Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
Have you approached Yorkshire Building Society to seek consent to the Transfer of Equity
Important warnings to consider in conjunction with the above Yorkshire Building Society transfer of equity Info :
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
If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such terms are not adhered to 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 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 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 finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Yorkshire Building Society your property may be repossessed.
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 conveyancer 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.
