Questions and answers: Yorkshire Building Society transfer of equity
- My Yorkshire Building Society home loan is in joint names with ex, who is agreeable to be removed and let me have the property. Yorkshire Building Society will permit the transfer of equity to me solely. Do Yorkshire Building Society write my employer to verify my salary?
- I am in the process of refinancing my apartment in Heathfield
does my lawyer need to be on the Yorkshire Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
- Two years ago I purchased a house without my partner's name on the deeds. My lawyer claimed it is due to the fact that she was not in the mortgage with Yorkshire Building Society. Is it possible for me to put her name on the deeds?
- I acquired a house with a friend six years ago Since then, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Yorkshire Building Society mortgage. There is a meaningful difference between the value the bank say and what the property would sell for currently. Can you offer any advice?
- I am answering a Yorkshire Building Society transfer of equity request and have come to the questions that asks about debts etc. There are some debts that I have been paying off over a long period, I understand that they have long since disappeared from my credit records. Am I obliged to declare these?
- Our financial adviser has recommended their conveyancer for the Transfer of Equity plus remortgage with Yorkshire Building Society - Is it not simpler easier to just use them?
- I am in the process of 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
lawyer to deal with the transfer of equity? They need to be on the Yorkshire Building Society conveyancing panel.
Sample of questions 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
If are intent on holding 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 give details of the amount?
Would you like us to draft you Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
If you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Can you give the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Important warnings to consider in in addition to the above Yorkshire Building Society transfer of equity information :
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 obtain the consent of 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.
If the transfer of equity is made pursuant to 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 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.
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 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 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.