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

• Will I have to pay any fees for a Transfer of Equity where the existing home loan is with Marsden Building Society?
• My mother died last March leaving a unencumbered house to me and my step brother equally. He has always lived in the house, there was a condition in her will saying the premisescould not be sold for three years following her passing so he could remain there for a specified time frame. He now wants to remain in the premises beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the conventional way to acquire my share?
• My former wife are looking to get a conveyancer lined up for a refinance with Marsden Building Society. Transfer of Equity conveyancing is also neededI have used the different rating based tools and the results are from all over England and Wales. Do we need to have a lawyer local to us?
• I am selling my share of a property in Warwick to my co-owners husband, they are sticking with Marsden Building Society being the the existing mortgage company. We are in heated discussion as to who should pay the legal bill for the transfer of equity. Should this be shared or is one party obliged to cover the legal bill?
• Having been a number of years apart I have made the decision to relinquish up my interest in our former home to my husband who is refinancing with Marsden Building Society. Could this transfer of equity be done within 28 days?
• What if my application doesn't meet Marsden Building Society lending criteria for a transfer of equity?
• Have recently split up with my wife of thirty years. I'm now living with my parents again and she wants to remain in the property and pay me off. What percentage am I entitled to. Is it 50% of the equity after paying off the mortgage with Marsden Building Society? I assume proper valuations are required but I really need ensure that I'm getting what I am entitled to

Examples of information requested in a conveyancer questionnaire relating to Marsden Building Society Transfer of Equity

Caveats to be read in supporting the above Marsden 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 Marsden Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, provisions in 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 conditions are not complied with you may be in breach 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 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 lawyer will check with Marsden 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 Marsden 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 Marsden 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 Marsden 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 conveyancer 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.