Frequently asked questions relating to Dudley Building Society transfer of equity

• What do I do if I am not happy with the conveyancing solicitor who conducted my transfer of equity conveyancing?
• My mortgage broker has suggested using their conveyancer for my Transfer of Equity plus remortgage with Dudley Building Society - won’t it be advisable to just instruct them?
• Can I apply to borrow more money from Dudley Building Society as part of a Transfer of Equity?
• I am planning on removing a name from a joint mortgage and the Dudley Building Society need me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Sedgefield conveyancing solicitor to deal with the transfer of equity? They need to be on the Dudley Building Society conveyancing panel.
• I already have a mortgage with Dudley Building Society and am retaining my existing mortgaging but seeking to have it in my name alone so my ex will be removed from the title. How long can it take for the application to be processed?
• My friend and I got a joint mortgage with Dudley Building Society on a house in 2013. I am now looking to get a apartment on my own and my friend would like to buy me out. Assuming we can agree a price what happens next? Would there be any potential problem with Dudley Building Society with him being responsible for the total mortgage as opposed to only part of it?
• My partner and I co-own a property in Blaenavon . Mortgage is with Dudley Building Society. I wish to transfer full ownership to him with no payment of money but without using a lawyer. Do you think this should be simple?

Information that may be required from your conveyancing solicitor may ask regarding your Dudley Building Society Transfer of Equity

Information to consider in further to the above Dudley 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 Dudley Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation 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 lawyer will check with Dudley 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 Dudley 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 conclusion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Dudley 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 Dudley 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 provided 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.