Examples of recent questions relating to Cambridge Building Society transfer of equity

• What is the process for having a person removed off the deeds to a house if the home loan is with Cambridge Building Society
• My wife and I jointly own a BTL. I am a top rate tax payer. Preferably I would like to complete a transfer of equity into her name with a view to mitigate tax on rental income. If Cambridge Building Society are content with this the legal fees are not prohibitive. What are the implications when we sell? Would my GGT relief be lost.
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Cambridge Building Society?
• My existing mortgage is with Cambridge Building Society. Can I transfer equity to someone less than 18 years old?
• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Cambridge Building Society?
• I currently have a joint Cambridge Building Society mortgage with my cousin and am investigating the option of him taking on the outstanding mortgage and removing myself from it, so as to enable me to buy a property with my fiance. The outstanding mortgage is about 250k, and the property value is about 600k. Is this a transfer of equity? Is land tax involved?
• My brother and I got a joint mortgage with Cambridge Building Society on a property a couple of years 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 price what happens next? Would there be any potential issue with Cambridge Building Society with him being on the hook for the total loan as opposed to only part of it?

Information that may be required from your conveyancer could ask regarding your Cambridge Building Society Transfer of Equity

General Advice to read in conjunction with the above Cambridge Building Society transfer of equity Questions and Answers :

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 Cambridge 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 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 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 lawyer will check with Cambridge 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 Cambridge 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 finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Cambridge Building Society Mortgage

When it comes to preparing the the Land Registry documents your conveyancer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Cambridge 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 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.