Mansfield Building Society transfer of equity: q and a’s

• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Mansfield Building Society?
• Is it possible to apply to borrow a further advance from Mansfield Building Society as part of a Transfer of Equity?
• My former wife are looking to get a conveyancing solicitor lined up for a new mortgage with Mansfield Building Society. Transfer of Equity conveyancing is also necessaryI have used the different rating based websites and the results are from all over UK. How necessary is it to have a conveyancer local to us?
• I am completing a Mansfield Building Society transfer of equity application and have arrived at the section regarding defaults etc. There are some debts that I have been clearing over a long period, I understand that they no longer remain my credit records. Must I declare these?
• Will I have to pay any charges for a Transfer of Equity where the existing home loan is with Mansfield Building Society?
• My wife and I jointly own a buy to let. I am a top rate tax payer. Preferably I would like to do a transfer of equity into her name with a view to mitigate tax on the letting income. Assuming Mansfield Building Society are fine with this the legal fees are not prohibitive. What are the implications when we sell? As I would no longer be on the title documents would I lose my CGT relief.
• My brother and I got a joint mortgage with Mansfield Building Society on a apartment in 2013. I am now looking to get a property on my own and my friend would like to buy me out. Assuming we can agree an amount where do we go? Would there be any potential issue with Mansfield Building Society with him being solely liable for the total loan as opposed to only part of it?

Information that may be required from your conveyancer may ask about your Mansfield Building Society Transfer of Equity

Caveats to be read in conjunction with the above Mansfield 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 Mansfield 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 require that you have a license to do so from the landlord. If such conditions are not complied with you may be in violation 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 conveyancer will check with Mansfield 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 Mansfield 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.

Preparing the Transfer of Equity with a Mansfield 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 Mansfield 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.

Information provided 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.