Cumberland Building Society transfer of equity: q and a’s

• What do I do if I am not happy with the conveyancer who conducted my transfer of equity conveyancing?
• Last year bought a flat without my partner's name on the deeds. My lawyer claimed it is due to the fact that she was not in the mortgage with Cumberland Building Society. Is it possible for me to add her name on the title?
• My former husband are seeking to get a conveyancing solicitor lined up for a new mortgage with Cumberland Building Society. Transfer of Equity conveyancing is also requiredI have used the different rating based tools and the results are from all over England and Wales. Is it important to appoint a conveyancer local to us?
• My partner and I jointly own a flat in Wakefield . Home loan is with Cumberland Building Society. I would like to transfer full ownership to him with no exchange of money but without using a lawyer. Do you think this should be simple?
• My divorce is through as is the consent order. Now I must deal with the transfer of equity at the land registry and the Cumberland Building Society home loan. I have contacted Cumberland Building Society for the transfer of equity forms. What happens next?
• How and when do I cover the costs of stamp duty chargeable for the transfer of equity in my house in my sole name which is taking place at the same time as a switching mortgage with Cumberland Building Society?
• Cumberland Building Society yesterday agreed I can take over the mortgage on the house. I have applied for a transfer of equity but presumably there is a transfer of ownership at HMLR as well?

Questions that your conveyancer could ask in relation to your Cumberland Building Society Transfer of Equity

Important warnings to consider in conjunction with the above Cumberland Building Society transfer of equity Questions and Answers :

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 Cumberland 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 require that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in breach of the lease. This could trigger 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 varies based on the valuation of the property at finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Cumberland Building Society Mortgage

When it comes to preparing the the Land Registry documents your conveyancer 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 conveyancer 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.