Frequently asked questions relating to Holmesdale Building Society transfer of equity

• Can you tell me how to have a person removed off the title documents to a house if the home loan is with Holmesdale Building Society
• I am answering a Holmesdale Building Society transfer of equity application and have arrived at the section concerning debts etc. I do some debts that I have been discharging for a number of years, in fact they have long since disappeared from my credit rating. Must I declare these?
• My ex-wife and I are in the market for a responsive conveyancing solicitor to assist in a transfer of equity and remortgage with Holmesdale Building Society. I I am concerned about being overcharged and there's so many conveyancing solicitors who do transfer of equity conveyancing out there...who do I opt for?
• I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
• Me and a friend got a joint mortgage with Holmesdale Building Society on a house a couple of years ago. I am now thinking of buying a flat by myself and my friend would like to buy me out. Once we have agreed a figure what are the next steps? Is there likely to be any concerns with Holmesdale Building Society with him being solely liable for the total loan rather than only part of it?
• I am considering refinancing my house in Rye does my lawyer have to be on the Holmesdale Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
• As things stand I have a joint Holmesdale Building Society mortgage with my cousin and am looking into the feasibility of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to purchase a property with my soon-to-be-wife. The remaining mortgage is in the region 300k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax involved?

Examples of information requested in a conveyancing solicitor questionnaire concerning a Holmesdale Building Society Transfer of Equity

Important warnings to consider in supporting the above Holmesdale Building Society transfer of equity information :

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 Holmesdale Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to 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 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 lawyer will check with Holmesdale 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 Holmesdale 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 transaction.

Preparing the Transfer of Equity with a Holmesdale Building Society Mortgage

When it comes to preparing the the Land Registry documents your lawyer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Holmesdale 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.