Top seven questions relating to Chesham Building Society transfer of equity
- At what point do I incur stamp duty payable for the transfer of equity in my property in my name alone which is happening simultaneously with a refinancing via Chesham Building Society?
- How much the typical solicitors costs are for a transfer of equity? I'm in the process of remortgaging - moving over to Chesham Building Society - and have been quoted £250 plus VAT by Chesham Building Society's approved conveyancer, Have I been over quoted?
- I co-own a house in Winchelsea
, with a Chesham Building Society loan with my former partner. Him and his new partner are going to acquire my share. We had the go ahead from Chesham Building Society to substitute my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Chesham Building Society (apparently). In order to save fees can I do the Land Registry change?
- My former husband are seeking to get a lawyer in place for a new mortgage with Chesham Building Society. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over UK. Is it important to appoint a conveyancing solicitor local to us?
- I am completing a Chesham Building Society transfer of equity form and have come to the section that asks about debts etc. There are some debts that I have been discharging for a number of years, I understand that they have long since disappeared from my credit rating. Do I need to set these out?
- My Chesham Building Society home loan we jointly entered into with ex, he is agreeable to be removed and let me have the property. Chesham Building Society have consented to the transfer of equity to me solely. Do Chesham Building Society call my boss to verify my salary?
- I am planning on removing a name from a joint mortgage and the Chesham Building Society require me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Witham
conveyancer to deal with the transfer of equity? They need to be on the Chesham Building Society conveyancing panel.
Questions that your conveyancer may ask about your Chesham Building Society Transfer of Equity
Would you like us to draw up a Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
Please give the name(s) and addresse(s) of anyone to be extracted from the title deeds?
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Please clarify where you are providing any payment for the Transfer of Equity and to whom and give details of the amount?
Where you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please provide the details of anyone to be added to the property title?
Information to consider in further to the above Chesham 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 Chesham Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in breach 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 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 finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Chesham Building Society your property may be repossessed.
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.
