Cumberland Building Society transfer of equity example support desk enquires

• I understand we would need at least AP1 and Transfer Deed. Is this true?
• My dad died last March leaving a unencumbered property to me and my brother 50:50. Having continues to reside at the property, there was a provision in her will saying the propertycould not be sold for 24 months following her passing so he could reside there for a while. He now wishes to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the conventional way to acquire my share?
• The financial adviser has suggested using their lawyer for our Transfer of Equity plus remortgage with Cumberland Building Society - Surely it’s better to just instruct them?
• Am I best advised cancel the direct debit for my mortgage with Cumberland Building Society once a date for my remortgage and transfer of equity has been agreed?
• I am filling out a Cumberland Building Society transfer of equity application and have arrived at the part regarding defaults etc. I do some debts that I have been paying off for a number of years, in fact they have long since disappeared from my credit records. Must I declare these?
• What is the process for having someone removed off the deeds to a house if the mortgage is with Cumberland Building Society
• I jointly own a flat in Crabtree , with a Cumberland Building Society mortgage with my ex partner. He and his new partner are going to acquire my share. We had the go ahead from Cumberland Building Society to substitute my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Cumberland Building Society (apparently). Can we do the Land Registry change?

Information that may be required from your conveyancer is likely to ask regarding your Cumberland Building Society Transfer of Equity

Information to consider in in addition to the above Cumberland Building Society transfer of equity Advice :

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 Cumberland 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 freeholder. If such conditions are not complied with you may be in breach of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to 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 Cumberland 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 Cumberland 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.

Preparing the Transfer of Equity with a Cumberland Building Society Mortgage

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

If Cumberland 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 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.