Recently asked questions relating to Manchester Building Society transfer of equity

• My ex-wife and I are in the market for an affordable conveyancing lawyer to assist in a transfer of equity and remortgage with Manchester Building Society. I I am concerned about appointing the wrong one but with many conveyancing firms who do transfer of equity conveyancing to choose from...how do I know which is best select?
• I bought a property with my cousin five.seven years ago Since then, we have both got married. We are now looking to do a transfer of equity so my name is removed the Manchester Building Society mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
• I jointly own a property in Timperley , with a Manchester Building Society loan with my former partner. He and his new partner are going to buy me out. We had the go ahead from Manchester Building Society to substitute my name with hers. The transfer of equity needs to be done by a lawyer for Manchester Building Society (apparently). In order to save fees can I deal with the Land Registry change?
• Is it sensible to stop my mortgage payments with Manchester Building Society as soon as a date for my remortgage and transfer of equity has been agreed?
• My mortgage broker has recommended their lawyer for my Transfer of Equity plus remortgage with Manchester Building Society - won’t it be advisable to just use them?
• My wife and myself have equal shares in a investment property. I am a higher rate tax payer. Preferably I would like to complete a transfer of equity into her name with a view to mitigate tax on rental income. If Manchester 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 would I lose my CGT relief.
• I am completing a Manchester Building Society transfer of equity form and have arrived at the questions regarding defaults etc. There are some debts that I have been paying off for a number of years, in fact they no longer remain my credit rating. Do I need to set these out?

Information that may be required from your conveyancing solicitor could ask regarding your Manchester Building Society Transfer of Equity

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

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in breach of 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 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 conveyancer will check with Manchester 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 Manchester 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 Manchester 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 Manchester 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 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.