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

• I am filling out a Cumberland Building Society transfer of equity request and have come to the questions 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 score. Do I need to disclose these?
• Will I incur any fees for a Transfer of Equity where the existing mortgage is with Cumberland Building Society?
• My mum died seven months ago leaving a mortgage-free property to me and my brother 50:50. Having continues to reside at the house, there was a clause in her will specifying that the propertycould not be sold for 24 months following her passing so he could continue to live there for a prescribed period. He now wants to remain in the property beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the usual way to acquire my half from me?
• Me and a friend got a joint mortgage with Cumberland Building Society on a apartment a couple of years ago. I am now thinking of buying a apartment by myself and my friend would like to buy me out. On the basis that we can settle on an amount what happens next? Is there likely to be any issue with Cumberland Building Society with him being on the hook for the total loan as opposed to only part of it?
• Can you tell me how to have a person removed off the deeds to a property if the home loan is with Cumberland Building Society
• After three years apart I have decided to relinquish up my interest in our former home to my husband who is refinancing with Cumberland Building Society. Could this transfer of equity be done within four weeks?
• Have recently separated from my partner of thirty years. I'm now back with my parents again and she wants to remain in the apartment and pay me off. What percentage am I entitled to. Is it half of the equity after paying off the mortgage with Cumberland Building Society? I assume proper valuations are necessary but I would like ensure that I'm getting I am not being taken advantage of

Sample of information requested in a lawyer questionnaire relating to Cumberland Building Society Transfer of Equity

General Advice to read 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

If your property is 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 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 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 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 market value of the property at the conclusion 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 conveyancing solicitor 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 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.