Top seven questions relating to Chesham Building Society transfer of equity

• My existing mortgage is with Chesham Building Society. Can I transfer equity to someone who is not yet eighteen years old?
• Is it sensible to cancel the direct debit for my mortgage with Chesham Building Society once a date for my remortgage and transfer of equity has been agreed?
• I already have a home loan with Chesham Building Society and am keeping my current mortgaging but seeking to have it in my name only so my former partner won't be on it any longer. How long do Chesham Building Society take to deal with the application?
• As things stand I have a joint Chesham Building Society mortgage with my brother and am investigating the possibility of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to purchase somewhere with my fiance. The outstanding mortgage is in the region 200k, and the property value is approx 500k. Is this a transfer of equity? Is land tax due?
• Law month I separated from my partner of twenty years. I'm now back with my parents again and she wants to stay in the flat and pay me off. What percentage do I get. Is it 50% of the equity after discharging the mortgage with Chesham Building Society? I assume proper valuations are necessary but I would like to be sure that I'm getting what I am entitled to
• I am answering a Chesham Building Society transfer of equity request and have come to the part regarding debts etc. I do some debts that I have been discharging for a number of years, in fact they have long since disappeared from my credit records. Am I obliged to set these out?
• What can I do where I am dissatisfied with the lawyer who conducted my transfer of equity transaction?

Sample of information requested in a conveyancer questionnaire relating to Chesham Building Society Transfer of Equity

Important warnings to consider in in addition to the above Chesham Building Society transfer of equity Questions and Answers :

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 Chesham Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in 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 terms are not adhered to you may be in violation 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 Chesham 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 Chesham 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 Chesham 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 Chesham 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.