Recently asked questions relating to Marsden Building Society transfer of equity
- I understand we would need at least AP1 and Transfer Deed. Is this true?
- What are the average legal fees are for a transfer of equity? I'm in the process of remortgaging - moving over to Marsden Building Society - and have been quoted £350 excluding VAT by Marsden Building Society's appointed conveyancing solicitor, Have I been over quoted?
- Can I transfer the equity held in my property with my Marsden Building Society home loan?
- Me and my partner co-own a property in Wakefield
. Home loan is with Marsden Building Society. I wish to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Do you think this should be easy to so?
- I am answering a Marsden Building Society transfer of equity form and have come to the questions that asks about debts etc. There are some debts that I have been clearing over a long period, I understand that they no longer remain my credit rating. Must I disclose these?
- I am transferring my share of a apartment in Warwick to the other co-owners husband, they are sticking with Marsden Building Society being the the existing mortgage company. We are debating as to who should pay the fees for the transfer of equity. Is this normally shared or is one party obliged to cover the charges for?
- My partner and myself jointly own 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 the letting income. Assuming Marsden Building Society are fine with this the legal fees are not prohibitive. However what happens when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
Examples of questions in a conveyancer questionnaire relating to Marsden Building Society Transfer of Equity
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Please provide the details of anyone to be added to the property title?
Please provide the name(s) and addresse(s) of anyone who jointly owns the property with you?
Is the transfer of equity subject to a court order? If yes please supply a copy
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
If you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Important warnings to consider in supporting the above Marsden 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 Marsden Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, provisions in 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 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 conveyancing solicitor 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.
Your property may be repossessed if you do not keep up repayments on your mortgage with Marsden Building Society.
Preparing the Transfer of Equity with a Marsden 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 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 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.
