Sample questions relating to Ecology Building Society transfer of equity

• My decree absolute is through as is the consent order. Now I need to address the transfer of equity at the HMLR and the Ecology Building Society mortgage. I have asked Ecology Building Society for the transfer of equity forms. What happens next?
• I am in the process of removing a name from a joint mortgage and the Ecology Building Society require me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Dunnington conveyancer to deal with the transfer of equity? They need to be on the Ecology Building Society conveyancing panel.
• The financial adviser has recommended their conveyancer for the Transfer of Equity plus remortgage with Ecology Building Society - Surely it’s better to just use them?
• My Ecology Building Society mortgage we jointly entered into with ex, he has agreed to come off the mortgage and let me have the property. Ecology Building Society will permit the transfer of equity to me solely. Will Ecology Building Society get in touch with my employer to check my salary?
• What can I do where I am unhappy with the lawyer who undertook my transfer of equity conveyancing?
• I got divorced four years ago. For some reason I never got around to transfer ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Ecology Building Society is happy to transfer the property and loan in my name (affordability checks done). Does she need a conveyancer?
• How do I go about adding or subtracting names (transfer of equity) to or from my Ecology Building Society mortgage account?

Information that may be required from your conveyancer is likely to ask regarding your Ecology Building Society Transfer of Equity

Important warnings to consider in further 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 premises

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. 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 as a result of 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 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 market value of the property at the time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Ecology Building Society Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor 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 conveyancing solicitor 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 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.