Principality Building Society transfer of equity example support desk enquires

• Is there such a thing a transfer of equity stamp duty calculator?
• What legal advice do I need when doing a transfer of equity where the home loan is to remain with Principality Building Society?
• My friend and I got a joint mortgage with Principality Building Society on a flat a couple of years ago. I am now thinking of buying a apartment on my own and my friend would like to buy me out. Once we have agreed a figure where do we go? Is there likely to be any issue with Principality Building Society with him being responsible for the total loan as opposed to only part of it?
• I already have a mortgage with Principality Building Society and am retaining my current mortgaging but wish to have it in my name only so my ex won't be on it any longer. How long do Principality Building Society take to process the application?
• I am filling out a Principality Building Society transfer of equity form and have arrived at the section regarding defaults etc. I do some debts that I have been reducing since 2009, I understand that they have long since disappeared from my credit score. Must I set these out?
• My decree absolute is through as is the consent order. Now I need to deal with the transfer of equity at the land registry and the Principality Building Society home loan. I have called Principality Building Society for the transfer of equity forms. What happens next?
• The financial adviser has suggested using their lawyer for our Transfer of Equity plus remortgage with Principality Building Society - won’t it be easier to just instruct them?

Sample of questions in a conveyancing solicitor form concerning a Principality Building Society Transfer of Equity

General Advice to read in conjunction with the above Principality Building Society transfer of equity Info :

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 Principality Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not complied with you may be in violation of your covenants under 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 Principality 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 Principality 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 the time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Principality 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 Principality 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 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.