Recently asked questions relating to Chelsea Building Society transfer of equity
- I am trying to find a conveyancing solicitor to undertake my transfer of equity. Chelsea Building Society are dealing with the refinancing. I considered asking my financial adviser. I understand he will likely get a kickback for suggesting 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?
- Me and a friend got a joint mortgage with Chelsea Building Society on a property in 2013. I am now thinking of purchasing a flat by myself and my friend would like to buy me out. On the basis that we can settle on a price what happens next? Would there be any potential problem with Chelsea Building Society with him being on the hook for the total loan rather than only half of it?
- My former wife are planning to get a conveyancing solicitor lined up for a new mortgage with Chelsea Building Society. Transfer of Equity conveyancing is also neededI have used the different rating based services and the results are from all over England and Wales. Do we need to appoint a conveyancer local to us?
- My Chelsea Building Society home loan is in joint names with ex, who has agreed to come off the mortgage and put the house in my name alone. Chelsea Building Society will permit the transfer of equity to me solely. Do Chelsea Building Society call my company to confirm my salary?
- What is the process for adding or removing names (transfer of equity) to or from my Chelsea Building Society mortgage account?
- What are the average legal costs are for a transfer of equity? I need to transfer equity and refinance - new loan with Chelsea Building Society - and have been quoted Four Hundred pounds plus VAT by Chelsea Building Society's approved conveyancing solicitor, Is this is a good price or not?
- I purchased a property with a friend six years ago Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name is removed the Chelsea Building Society mortgage. There is a significant difference between the value the bank hold and what the property would sell for currently. Can you offer any advice?
Examples of information requested in a conveyancer form concerning a Chelsea Building Society Transfer of Equity
If you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Who will be responsible for the costs of the Transfer of Equity?
Have you approached Chelsea Building Society to obtain consent to the Transfer of Equity
Can you give the name(s) and addresse(s) of anyone who jointly owns the property with you?
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
General Advice to read in conjunction with the above Chelsea 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 Chelsea Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
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 landlord. If such restrictions are not strictly observed you may be in violation of 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 conveyancing solicitor will check with Chelsea 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 Chelsea 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 valuation of the property at the time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Chelsea Building Society your property may be repossessed.
Preparing the Transfer of Equity with a Chelsea 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 Chelsea 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 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.
