Sample questions relating to Family Building Society transfer of equity

• Can I transfer the equity held in my property with my Family Building Society home loan?
• I am selling my equity in house in Hendon to my co-owners husband, they are reapplying to Family Building Society. We are debating as to who must pay the costs of the transfer of equity. Is this usually shared or is one party liable for the fees for?
• At what stage do I cover the costs of stamp duty chargeable for the transfer of equity in my house in my name alone which is taking place simultaneously with a switching mortgage via Family Building Society?
• My fiance and I have equal shares in a BTL. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity into her name in order mitigate tax on rental income. If Family Building Society are happy with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the deeds am I giving up my CGT relief.
• I plan to remortgage my home in Littleborough switching from Yorkshire Building Society to Family Building Society. The apartment is jointly owned but wish for it to be in my sole name once I transfer. My husband is OK with this and is willing to transfer equity but neither of us want to incur lawyer fees.
• Our financial adviser has suggested using their conveyancer for the Transfer of Equity plus remortgage with Family Building Society - Is it not simpler advisable to just instruct them?
• My former wife are looking to get a conveyancer in place for a new mortgage with Family Building Society. Transfer of Equity conveyancing is also requiredI have used the different rating based websites and the results are from all over the country. Is it important to appoint a conveyancing solicitor local to us?

Questions that your conveyancing solicitor may ask regarding your Family Building Society Transfer of Equity

Caveats to be read in in addition to the above Family Building Society transfer of equity Info :

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 Family Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, 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 violation of your covenants under the lease. This could trigger 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 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 finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Family 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 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 lawyer 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 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.