Recently asked questions relating to Dudley Building Society transfer of equity

• I purchased a property with my cousin in 2010 Since then, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Dudley Building Society mortgage. There is a significant difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
• I am transferring my equity in house in Hendon to my co-owners husband, they are reapplying to Dudley Building Society. We are in heated discussion as to who must cover the costs of the transfer of equity. Should this be split or is one party obliged to cover the legal bill?
• Taking into account that we have been three years estranged I have made the decision to give up my interest in the house to my husband who is re-mortgaging with Dudley Building Society. Can a transfer of equity be done in less than one month?
• Will I incur any charges for a Transfer of Equity where the current home loan is with Dudley Building Society?
• My existing mortgage is with Dudley Building Society. Can I transfer equity to someone under eighteen years old?
• I am are looking to find a value for money conveyancing lawyer to help me sell in a transfer of equity and refinance with Dudley Building Society. I am aware of the dangers of getting ripped off and there's so many conveyancing practices who do transfer of equity conveyancing out there...who do I opt for?
• How and when do I incur the Stamp Duty Land Tax due for the transfer of equity in my house in my sole name which is happening at the same time as a switching mortgage via Dudley Building Society?

Examples of questions in a conveyancer questionnaire concerning a Dudley Building Society Transfer of Equity

Information to consider in in addition to the above Dudley Building Society transfer of equity Questions and Answers :

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 titles

If your property is leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not complied with 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 conveyancer 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 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 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.