Questions and answers: Family Building Society transfer of equity

• I understand we would need at least AP1 and TR1. Is this true?
• Last year bought a flat without my partner's name on the title. My conveyancer said it is because she was not in the loan offer with Family Building Society. I'm wondering is there any way that I can put her name on the documents at HM Land Registry?
• I currently have a joint Family Building Society mortgage with my cousin and am looking into the possibility of him taking on the outstanding mortgage and extracting myself from it, so as to enable me to buy a place with my soon-to-be-wife. The remaining mortgage is in the region 200k, and the property value is about 500k. Is this a transfer of equity? Is land tax due?
• I am completing a Family Building Society transfer of equity application and have arrived at the part concerning debts etc. I do some debts that I have been discharging over a long period, I understand that they no longer remain my credit records. Must I declare these?
• I am trying to find a lawyer to undertake my transfer of equity. Family Building Society are dealing with the remortgage. I considered asking my mortgage broker. I understand he may get a referral fee for recommending a firm, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Any flaws you see in this way of thinking?
• Is it possible to transfer the equity held in my property with my Family Building Society mortgage?
• I am hoping to remortgage my apartment in Witham moving from HSBC to Family Building Society. The flat is jointly owned but intend for it to be in my sole name when I remortgage. My wife is OK with this and is happy to transfer equity but neither of us want to get a second lawyer involved.

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

Information to consider in in addition to the above Family Building Society transfer of equity information :

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 Family Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

Should the tenure of your property be 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 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 conveyancer will check with Family 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 Family 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 Family 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 Family 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 contained within 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.