Recently asked questions relating to Darlington Building Society transfer of equity

• I am selling my equity in property in Birmingham to my co-owners fiance, they are sticking with Darlington Building Society being the the existing lender. We are in heated discussion as to who must cover the legal bill for the transfer of equity. Should this be shared or is one of us obliged to cover the costs of?
• I already have a mortgage with Darlington Building Society and am maintaining my existing mortgaging but seeking to have have the equity transferred to my name alone so my ex won't be on it any longer. How long does the whole transfer of equity process take?
• I am led to believe we would need at least AP1 and TR1. Is this true?
• My partner and I jointly own a property in Romsey . Home loan is with Darlington 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 straightforward?
• My ex are seeking to get a conveyancer in place for a new mortgage with Darlington Building Society. Transfer of Equity conveyancing is also requiredI have used the different rating based services and the results are from all over the country. How necessary is it to appoint a conveyancing solicitor local to us?
• My Darlington Building Society home loan we jointly entered into with ex, who is agreeable to be removed and put the house in my name alone. Darlington Building Society will permit the transfer of equity to my individual name. Will Darlington Building Society contact my company to confirm my salary?
• Can I apply to borrow a further advance from Darlington Building Society as part of a Transfer of Equity?

Information that may be required from your lawyer could ask in relation to your Darlington Building Society Transfer of Equity

Important warnings to consider in supporting the above Darlington Building Society transfer of equity Info :

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 Darlington Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such restrictions 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 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 is dependent on the market value of the property at finalisation of the transfer of equity conveyancing.

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 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 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.