Recently asked questions relating to Darlington Building Society transfer of equity
- Me and my former fiance and I are are looking to find a dependable conveyancing solicitor to assist in a transfer of equity and remortgage with Darlington Building Society. I want to avoid being ripped off but with various conveyancing organisations who do transfer of equity conveyancing to choose from...who do I opt for?
- I co-own a property in Blaenavon
, with a Darlington Building Society loan with my ex partner. Him and his fiance are going to acquire my share. We had approval from Darlington Building Society to replace my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Darlington Building Society (apparently). In order to save fees can I deal with the Land Registry change?
- I am disposing of my share of a house in Birmingham to the other co-owners fiance, they are sticking with Darlington Building Society being the the existing mortgage company. We are in heated discussion as to who should pay the fees for the transfer of equity. Is this usually split or is one of us obliged to cover the costs of?
- I am trying to find a conveyancer to handle my transfer of equity. Darlington Building Society have been approached for a remortgage. I thought of asking my mortgage broker. I understand he may get a referral fee for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Is my logic correct?
- After 2 a couple of years separated I have opted to give up my share of our property to my husband who is re-mortgaging with Darlington Building Society. Can a transfer of equity be done in four weeks?
- What are the average legal charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Darlington Building Society - and have been quoted £250 including VAT by Darlington Building Society's appointed conveyancing solicitor, Have I been over quoted?
- I acquired a flat with my brother five.seven years ago Since then, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the Darlington Building Society mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
Information that may be required from your conveyancing solicitor could ask regarding your Darlington Building Society Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Where you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please list all persons who occupy the property, their respective ages and relationships to you.
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Information to consider in further to the above Darlington Building Society transfer of equity information :
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 Darlington 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 obtain the consent of the freeholder. If such conditions are not strictly observed you may be in breach 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 Darlington 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 Darlington 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.
Your property may be repossessed if you do not keep up repayments on your mortgage with Darlington Building Society.
Preparing the Transfer of Equity with a Darlington 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 Darlington 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.
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.
