Frequently asked questions relating to Beverley Building Society transfer of equity

• What if my application doesn't meet Beverley Building Society lending criteria for a transfer of equity?
• Me and a friend got a joint mortgage with Beverley Building Society on a house about a year ago. I am now thinking of buying a flat on my own and my friend would like to buy me out. Once we have agreed a figure what happens next? Is there likely to be any problem with Beverley Building Society with him being solely liable for the total loan as opposed to only half of it?
• What should I be budgeting for when it comes to what legal fees are for a transfer of equity? I need to transfer equity and remortgage - new loan with Beverley Building Society - and have been quoted Three Hundred pounds excluding VAT by Beverley Building Society's appointed conveyancing solicitor, Is this a reasonable price?
• I am trying to find a conveyancing solicitor to handle my transfer of equity. Beverley Building Society are dealing with the refinancing. I considered asking my financial adviser. I am lead to believe he may receive a kickback for recommending someone, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Any flaws you see in this way of thinking?
• I got divorced two years ago. Foolishly I never got around to transfer ownership from the current 'joint' status to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Beverley Building Society is willing to transfer the property and loan in my name (financial checks done). Does she need a solicitor?
• I currently have a joint Beverley Building Society mortgage with my brother and am looking into the option of him taking on the outstanding mortgage and removing myself from it, so as to enable me to purchase a place with my partner. The remaining mortgage is in the region 300k, and the property value is approx 600k. Is this a transfer of equity? Is land tax due?
• I am disposing of my share of a property in Woodside to my co-owners fiance, they are sticking with Beverley Building Society as the the existing mortgage company. We are debating as to who must pay the fees for the transfer of equity. Is this normally shared or is one party obliged to cover the fees for?

Questions that your conveyancer could ask regarding your Beverley Building Society Transfer of Equity

Caveats to be read in further to the above Beverley Building Society transfer of equity Info :

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 Beverley 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 obtain the consent of the landlord. If such restrictions 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 pursuant to 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 conveyancer will check with Beverley 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 Beverley 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 market value of the property at the time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Beverley 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 Beverley 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.

Content on 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.