Bath Building Society transfer of equity: q and a’s

• When it comes to transfer of equity conveyancing involving a remortgage with Bath Building Society should I be charged VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
• My partner and I jointly own a house in Romsey . Mortgage is with Bath Building Society. I want to transfer full ownership to him with no exchange of money but without using a conveyancer. Is this likely to be simple?
• My dad passed away last March leaving a unencumbered semi to me and my brother in equal shared. Having continues to reside at the house, there was a clause in the will specifying that the premisescould not be sold for 2 years following her passing so he could remain there for a specified time frame. He now wants to remain in the property beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the traditional way to buy my half from me?
• My wife and I jointly own a buy to let. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity to her sole name in order reduce our tax on the letting income. If Bath Building Society are happy with this the legal fees are not high. However what happens when we sell? As I would no longer be on the title documents am I giving up my CGT relief.
• I bought a flat with a friend in 2009 Since then, we have both got married. We are now intending to do a transfer of equity so my name comes off the Bath Building Society mortgage. There is a 30k difference between the value the Bath Building Society say and what the property would sell for currently. Can you offer any advice?
• Given that we have been 2 a couple of years separated I have made the decision to transfer my interest in our house to my husband who is refinancing with Bath Building Society. Can a transfer of equity be done inside one month?
• I got divorced four years ago. I simply never got around to transfer ownership from the current 'joint' status to just in my name. I am ready to do that and so is she. Transfer-of-equity is needed. Bath Building Society is happy to transfer the property and loan in my name (affordability checks done). Does she need any legal representation?

Information that may be required from your lawyer may ask regarding your Bath Building Society Transfer of Equity

Important warnings to consider in further to the above Bath 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 Bath Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. 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.

Indemnity Insurance

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 Bath 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 Bath 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 the conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Bath 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 Bath 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.

Information contained within 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.