Frequently asked questions relating to Yorkshire Building Society transfer of equity
- Me and my partner jointly own a property in Timperley
. Mortgage is with Yorkshire Building Society. I wish to transfer full ownership to him with no payment of money but without using a conveyancing solicitor. Do you think this should be simple?
- I got divorced in 2012. For some reason I never dealt with the change the ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. Yorkshire Building Society is willing to transfer the full equity in my name (affordability checks done). Does my ex need any legal representation?
- I am transferring my equity in house in Hendon to my co-owners husband, they are sticking with Yorkshire Building Society being the the existing mortgage company. We are in heated discussion as to who should pay the charges for the transfer of equity. Is this usually shared or is one party obliged to cover the legal bill?
- What if my application doesn't meet Yorkshire Building Society lending criteria for a transfer of equity?
- I am answering a Yorkshire Building Society transfer of equity request and have come to the questions regarding debts etc. I do some debts that I have been discharging over a long period, I understand that they have long since disappeared from my credit rating. Am I obliged to set these out?
- I am mortgaging my home in Witham
does my lawyer have to be on the Yorkshire Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
- My friend and I got a joint mortgage with Yorkshire Building Society on a flat a couple of years ago. I am now thinking of buying a apartment by myself and my friend would like to buy me out. On the basis that we can settle on an amount where do we go? Would there be any potential issue with Yorkshire Building Society with him being solely liable for the total mortgage rather than only part of it?
Examples of information requested in a conveyancing solicitor form concerning a Yorkshire Building Society Transfer of Equity
Will there be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what figure
Has one of the registered owners died? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.
Please give the details of anyone to be added to the title deeds?
Please list all persons who occupy the property, their respective ages and relationships to you.
Have you approached Yorkshire Building Society to seek consent to the Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Important warnings to consider in conjunction with the above Yorkshire Building Society transfer of equity Advice :
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 titles
If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in violation 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 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 is dependent on the valuation of the property at the conclusion 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.
Content 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.