Family Building Society transfer of equity example support desk enquires
- My mother passed away last May leaving a unencumbered property to me and my step brother in equal shared. Having continues to reside at the house, there was a provision in the will saying the housecould not be sold for 24 months after her death so he could reside there for a specified time frame. He now says he would like to remain in the premises beyond the specified period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the usual way to acquire my share?
- Law month I separated from my wife of thirty years. I'm now living with my parents again and she wishes to remain in the flat and buy me out. What portion am I entitled to. Is it half of the equity after paying off the mortgage with Family Building Society? I assume proper valuations are necessary but I would like ensure that I'm getting what I am entitled to
- Family Building Society have just agreed I can take over the mortgage on my home. I had applied for a transfer of equity but presumably there is a transfer of ownership at HMLR as well?
- Me and a friend got a joint mortgage with Family Building Society on a flat a couple of years ago. I am now thinking of buying a flat by myself and my friend would like to buy me out. On the basis that we can settle on a figure what happens next? Is there likely to be any concerns with Family Building Society with him being on the hook for the total mortgage as opposed to only part of it?
- What legal advice do I need when doing a transfer of equity where the home loan is to remain with Family Building Society?
- Having been 2 a couple of years apart I have decided to give up my share of our flat to my husband who is refinancing with Family Building Society. Can a transfer of equity be done in 28 days?
- I got my Decree Absolute two years ago. I simply never dealt with the change the ownership from both our names to my sole name. I am ready to do that and so is she. Transfer-of-equity is needed. Family Building Society is willing to transfer the full equity in my name (financial checks done). Does my ex need any legal representation?
Sample of information requested in a lawyer questionnaire relating to Family Building Society Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Have you approached Family Building Society to seek consent to the Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please clarify if you are providing any payment for the Transfer of Equity and to whom and disclose any such sums?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Important warnings to consider in conjunction with the above Family Building Society transfer of equity Info :
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 premises
If your property is leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in breach of your covenants under 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 conveyancing solicitor 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 varies based on the valuation of the property at finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Family Building Society your property may be repossessed.
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 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.
