Common questions relating to Furness Building Society transfer of equity

• I understand we would need at least AP1 and Transfer Deed. Is this true?
• Law week I separated from my ex of thirty years. I'm now living with my parents again and she wishes to stay in the flat and buy me out. What percentage am I entitled to. Is it half of the equity after discharging the mortgage with Furness Building Society? I assume proper valuations are necessary but I would like to be sure that I'm getting I am not being walked over
• What if my application doesn't meet Furness Building Society lending criteria for a transfer of equity?
• My Furness Building Society mortgage is in joint names with ex, he is agreeable to come off the mortgage and put the house in my name alone. Furness Building Society will permit the transfer of equity to my individual name. Do Furness Building Society call my employer to check my salary?
• I am am in need of a conveyancer to handle my transfer of equity. Furness Building Society have been approached for a refinancing. I considered asking my financial adviser. I am lead to believe he may get a kickback for recommending a firm, but also of benefit will be that he knows the conveyancer, has dealt with them before. Any flaws you see in this way of thinking?
• As things stand I have a joint Furness Building Society mortgage with my brother and am investigating the option of him taking on the outstanding mortgage and extracting myself from it, so as to enable me to purchase a place with my partner. The remaining mortgage is approx 200k, and the property value is approx 600k. Is this a transfer of equity? Is land tax payable?
• Given that we have been 4 years apart I have opted to relinquish up my share of the property to my husband who is re-mortgaging with Furness Building Society. Could this transfer of equity be completed in less than one month?

Sample of questions in a lawyer questionnaire concerning a Furness Building Society Transfer of Equity

Important warnings to consider in in addition to the above Furness 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 Furness Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

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 terms are not adhered to 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 as a result of 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 Furness 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 Furness 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 market value of the property at finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a Furness 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 Furness 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.

Content on 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.