Top seven questions relating to Newbury Building Society transfer of equity

• I purchased a house with my cousin in 2009 Since then, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the Newbury Building Society mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
• Is there such a thing a transfer of equity stamp duty calculator?
• What do I need to do when it comes adding or removing names (transfer of equity) to or from my Newbury Building Society mortgage account?
• Will I have to pay any fees for a Transfer of Equity where the existing mortgage is with Newbury Building Society?
• My Newbury Building Society mortgage we jointly entered into with ex, who is agreeable to be removed and let me have the property. Newbury Building Society have consented to the transfer of equity to my individual name. Will Newbury Building Society write my employer to check my salary?
• Me and my former fiance and I are in the market for an affordable conveyancing solicitor to assist in a transfer of equity and remortgage with Newbury Building Society. I I am fearful of by bill escalating out of control but with lots of conveyancing firms who do transfer of equity conveyancing to choose from...who's the best?
• My decree absolute has gone through as is the consent order. Now I need to sort out the transfer of equity on title deeds and the Newbury Building Society mortgage. I have asked Newbury Building Society for the transfer of equity forms. What do I do now?

Sample of questions in a conveyancing solicitor questionnaire concerning a Newbury Building Society Transfer of Equity

Caveats to be read in conjunction with the above Newbury 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 Newbury 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 require that you have a license to do so from the landlord. If such terms are not adhered to 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 lawyer will check with Newbury 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 Newbury 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 the conclusion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Newbury 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 Newbury 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.

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.