Frequently asked questions relating to Cambridge Building Society transfer of equity

• Is it possible to transfer the equity held in my property with my Cambridge Building Society home loan?
• My Cambridge Building Society home loan is in joint names with ex, he has agreed to be removed and put the house in my name alone. Cambridge Building Society will permit the transfer of equity to my individual name. Do Cambridge Building Society call my company to verify my salary?
• Am I best advised cancel the direct debit for my mortgage with Cambridge Building Society as soon as a date for my remortgage and transfer of equity has been agreed?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Cambridge Building Society?
• Have recently split up with my ex of thirty years. I'm now living with my mum and dad and she wants to stay in the apartment and buy me out. What portion am I entitled to. Is it 50% of the equity after paying off the mortgage with Cambridge Building Society? I assume proper valuations are required but I really need to be confident that I'm getting what I am entitled to
• I own a property in Wakefield , with a Cambridge Building Society loan with my former husband. He and his fiance are going to buy me out. We had consent from Cambridge Building Society to substitute my name with hers. The transfer of equity needs to be done by a conveyancer for Cambridge Building Society (supposedly). In order to save fees can I do the Land Registry formalities?
• I am am in need of a conveyancing solicitor to deal with my transfer of equity. Cambridge Building Society are dealing with the remortgage. I considered asking my financial adviser. I understand he may get a referral fee for suggesting a firm, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Is my logic misguided?

Sample of questions in a conveyancer form relating to Cambridge Building Society Transfer of Equity

Information to consider in supporting the above Cambridge Building Society transfer of equity Advice :

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

If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not complied with 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 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 varies based on the market value of the property at the conclusion 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 conveyancing solicitor 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 conveyancing solicitor 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.