Harpenden Building Society transfer of equity example support desk enquires

• What are the average solicitors fees are for a transfer of equity? I'm in the process of remortgaging - moving over to Harpenden Building Society - and have been quoted Three Hundred pounds excluding VAT by Harpenden Building Society's approved lawyer, Is this is a good price or not?
• My financial adviser has recommended their lawyer for our Transfer of Equity plus remortgage with Harpenden Building Society - Surely it’s easier to just instruct them?
• I plan to refinance my maisonette in Wakefield switching from Yorkshire Bank Home Loans to Harpenden Building Society. The maisonette is jointly owned but wish for it to be in my sole name when I remortgage. My wife is OK with this and is happy to sign a form but neither of us want to get a second conveyancing solicitor involved.
• As things stand I have a joint Harpenden Building Society mortgage with my cousin and am looking into the possibility of him assuming responsibility for the outstanding mortgage and extracting myself from it, to enable me to purchase a property with my fiance. The remaining mortgage is in the region 250k, and the property value is in the region 500k. Is this a transfer of equity? Is stamp duty involved?
• Do I need legal advice when doing a transfer of equity where the mortgage is to remain with Harpenden Building Society?
• What if my application doesn't meet Harpenden Building Society lending criteria for a transfer of equity?
• I understand we would need at least AP1 and TR1. Is this true?

Information that may be required from your lawyer could ask regarding your Harpenden Building Society Transfer of Equity

Important warnings to consider in in addition to the above Harpenden 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 Harpenden 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 have a license to do so from the landlord. If such restrictions are not strictly observed you may be in violation of 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 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 conveyancing solicitor will check with Harpenden 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 Harpenden 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 conveyancing.

Preparing the Transfer of Equity with a Harpenden 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 Harpenden 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.

Content 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.