Frequently asked questions relating to Yorkshire Building Society transfer of equity
- How much the typical solicitors charges are for a transfer of equity? I'm in the process of remortgaging - new loan with Yorkshire Building Society - and have been quoted £250 excluding VAT by Yorkshire Building Society's appointed conveyancing solicitor, Have I been over quoted?
- My wife and I have 50:50 shares in a BTL. I am a top rate tax payer. Ideally I would like to complete a transfer of equity to her sole name in order mitigate tax on the letting income. Assuming Yorkshire Building Society are fine with this the legal fees are not prohibitive. What are the implications when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
- My dad passed away last May leaving a unencumbered house to me and my step brother equally. He has always lived in the house, there was a clause in the will saying the premisescould not be sold for three years after her death so he could reside there for a prescribed period. He now says he would like to remain in the premises beyond the prescribed period. We have considered 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 purchase my half from me?
- My Yorkshire Building Society home loan is in joint names with ex, who has agreed to come off the mortgage and let me have the property. Yorkshire Building Society have consented to the transfer of equity to me solely. Will Yorkshire Building Society call my company to verify my salary?
- I am in the market for an affordable conveyancing lawyer to assist in a transfer of equity and remortgage with Yorkshire Building Society. I I am fearful of appointing the wrong one but with so many conveyancing firms who do transfer of equity conveyancing to choose from...how do I know which to select?
- My divorce has gone through as is the consent order. Now I must address the transfer of equity for the property and the Yorkshire Building Society mortgage. I have contacted Yorkshire Building Society for the transfer of equity forms. What do I do now?
- How do I go about adding or removing names (transfer of equity) to or from my Yorkshire Building Society mortgage account?
Sample of questions in a lawyer form relating to Yorkshire Building Society Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
If you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please list all persons who occupy the property, their respective ages and relationships to you.
Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
Have you approached Yorkshire Building Society to obtain consent to the Transfer of Equity
Is it the case that one of the registered owners passed away? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
Information 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 your covenants under the lease. This could trigger 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 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 conveyancing solicitor 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 transaction.
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 conveyancer 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.
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.