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

• I understand we would need at least AP1 and Transfer Deed. Is this true?
• I am thinking of mortgaging my house in Littleborough does my lawyer have to be on the Bath Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
• As things stand I have a joint Bath Building Society mortgage with my brother and am looking into the possibility of him assuming responsibility for the outstanding mortgage and removing myself from it, to enable me to purchase somewhere with my partner. The remaining mortgage is about 175k, and the property value is approx 450k. Is this a transfer of equity? Is land tax payable?
• What can I do where I am not happy with the conveyancer who undertook my transfer of equity conveyancing?
• Have recently split up with my partner of thirty years. I'm now living with my parents again and she wants to stay in the apartment and pay me off. What percentage am I entitled to. Is it half of the equity after paying off the Bath Building Society home loan? I assume proper valuations are required but I really need to be sure that I'm getting the best deal
• Having been four years separated I have made the decision to transfer my interest in our former home to my husband who is refinancing with Bath Building Society. Can a transfer of equity be completed in less than four weeks?
• I am planning on removing a name from a joint mortgage and the Bath Building Society require me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Wakefield conveyancer to deal with the transfer of equity? They need to be on the Bath Building Society conveyancing panel.

Questions that your lawyer may ask about your Bath Building Society Transfer of Equity

Important warnings to consider in supporting the above Bath Building Society transfer of equity information :

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

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 conditions are not strictly observed 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 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 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 finalisation 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 conveyancing solicitor 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 lawyer 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.