Common questions relating to Ecology Building Society transfer of equity

• I jointly own a apartment in Crabtree , with a Ecology Building Society loan with my ex husband. Him and his new partner are going to acquire my share. We had approval from Ecology Building Society to substitute my name with hers. The transfer of equity needs to be done by a conveyancer for Ecology Building Society (supposedly). In order to save fees can I do the Land Registry change?
• My fiance and I jointly own a BTL. I am a top rate tax payer. Preferably I would like to do a transfer of equity into her name in order reduce our tax on the letting income. Assuming Ecology Building Society are content with this the legal fees are not high. What are the implications when we sell? Would my GGT relief be lost.
• Will I have to pay any charges for a Transfer of Equity where the existing home loan is with Ecology Building Society?
• Ecology Building Society yesterday agreed I can take over the mortgage on my home. I have applied for a transfer of equity but presumably there is a transfer of ownership at HMLR in addition?
• I already have a home loan with Ecology Building Society and am maintaining my existing mortgaging but wish to have it in my name alone so my former partner will no longer be on the deeds. How long does the whole transfer of equity process take?
• As things stand I have a joint Ecology Building Society mortgage with my brother and am investigating the feasibility of him taking on the whole mortgage and removing myself from it, to enable me to purchase a property with my partner. The remaining mortgage is about 200k, and the property value is approx 450k. Is this a transfer of equity? Is land tax due?
• I am selling my equity in flat in Birmingham to the other co-owners husband, they are sticking with Ecology Building Society as the the existing mortgage company. We are haggling as to who must cover the charges for the transfer of equity. Should this be shared or is one of us liable for the costs of?

Questions that your conveyancing solicitor is likely to ask about your Ecology Building Society Transfer of Equity

Caveats to be read in in addition to the above Ecology Building Society transfer of equity information :

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 Ecology 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 require that you obtain the consent of the freeholder. If such conditions 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 conveyancer will check with Ecology 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 Ecology 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 time of completion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Ecology Building Society Mortgage

When it comes to preparing the the Land Registry documents your lawyer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Ecology 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 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.