Top seven questions relating to Yorkshire Building Society transfer of equity

• Law week I split up with my partner of 18 years. I'm now living with my parents again and she wants to stay in the flat and buy me out. What portion do I get. Is it 50% of the equity after paying off the mortgage with Yorkshire Building Society? I assume proper valuations are necessary but I would like ensure that I'm getting what I am entitled to
• I bought a property with my cousin six years ago Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name comes off the Yorkshire Building Society mortgage. There is a meaningful difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
• I already have a home loan with Yorkshire Building Society and am maintaining my current mortgaging but applying to have it in my name only so my ex will no longer be on the deeds. How long can it take for the application to be processed?
• Yorkshire Building Society have today agreed I can take over the mortgage on my home. I have applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds as well?
• My partner and I have equal shares in a buy to let. I am a top rate tax payer. Ideally I would like to do a transfer of equity to her sole name to mitigate tax on the letting income. If Yorkshire Building Society are happy with this the legal fees are inexpensive. What are the implications when we dispose of the property? Would my GGT relief be lost.
• My Yorkshire Building Society mortgage is in joint names with ex, he has agreed to be removed and put the house in my name alone. Yorkshire Building Society will permit the transfer of equity to my individual name. Will Yorkshire Building Society get in touch with my employer to confirm my salary?
• What if my application doesn't meet Yorkshire Building Society lending criteria for a transfer of equity?

Questions that your lawyer is likely to ask in relation to your Yorkshire Building Society Transfer of Equity

Important warnings to consider in supporting the above Yorkshire Building Society transfer of equity Questions and Answers :

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

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such terms are not adhered to you may be in breach 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 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.

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 provided 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.