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Yorkshire Building Society

Recently asked questions relating to Yorkshire Building Society transfer of equity

  • Me and my former partner and I are searching for a dependable conveyancing solicitor to assist in a transfer of equity and refinance with Yorkshire Building Society. I am aware of the risk of getting ripped off and there are so many conveyancing practices who do transfer of equity conveyancing out there...who's the best?
  • I currently have a joint Yorkshire Building Society mortgage with my step-brother and am investigating the option of him taking on the whole mortgage and removing myself from it, so as to enable me to buy somewhere with my fiance. The remaining mortgage is in the region 200k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax involved?
  • What are the average legal fees are for a transfer of equity? I'm in the process of remortgaging - new loan with Yorkshire Building Society - and have been quoted £250 plus VAT by Yorkshire Building Society's appointed lawyer, Is this is a good price or not?
  • Me and my partner jointly own a house in Heathfield . Mortgage is with Yorkshire Building Society. I would like to transfer full ownership to him with no payment of money but without using a conveyancer. Do you think this should be straightforward?
  • Me and a friend got a joint mortgage with Yorkshire Building Society on a flat about a year ago. I am now thinking of purchasing a property by myself and my friend would like to buy me out. On the basis that we can settle on a price what happens next? Would there be any potential problem with Yorkshire Building Society with him being on the hook for the total mortgage as opposed to only part of it?
  • My mum passed away seven months ago leaving a loan-free property to me and my half brother equally. He has always lived in the house, there was a clause in the will specifying that the housecould not be sold for three years following her death so he could continue to live there for a prescribed period. He now wishes to remain in the house beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the usual way to buy my half from me?
  • Is it possible to apply to borrow more money from Yorkshire Building Society as part of a Transfer of Equity?

Questions that your conveyancer is likely to ask regarding your Yorkshire Building Society Transfer of Equity

If you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Will there be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what figure

Who will be responsible for the costs of the Transfer of Equity?

Has consent been obtained from Yorkshire Building Society to the proposed transfer of equity?

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Please provide a copy of your National Insurance Number?

Information to consider in further to 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 premises

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.

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 the conclusion of the transfer of equity transaction.
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 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 conveyancing solicitor 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.


Frequently asked questions relating to Yorkshire Building Society transfer of equity