Sample questions relating to Skipton Building Society transfer of equity
- My friend and I got a joint mortgage with Skipton Building Society on a flat a couple of years ago. I am now thinking of purchasing a apartment by myself and my friend would like to buy me out. Once we have agreed a figure what happens next? Would there be any potential issue with Skipton Building Society with him being on the hook for the total loan as opposed to only part of it?
- I am hoping to remortgage my home in Dunnington
changing from Godiva Mortgages to Skipton Building Society. The home is jointly owned but wish for it to be in my name only once I transfer. My wife has agreed to this and is happy to sign a form but neither of us want to get a second conveyancing solicitor involved.
- My divorce is through as is the consent order. Now I need to sort out the transfer of equity on title deeds and the Skipton Building Society home loan. I have called Skipton Building Society for the transfer of equity forms. What do I do now?
- I am selling my equity in house in Hendon to my co-owners fiance, they are reapplying to Skipton Building Society. We are debating as to who should pay the charges for the transfer of equity. Should this be split or is one of us obliged to cover the fees for?
- I already have a home loan with Skipton Building Society and am keeping my current mortgaging but wish to have have the equity transferred to my sole name so my ex will be removed from the mortgage. How long do Skipton Building Society take to deal with the application?
- After 4 years apart I have opted to transfer my share of the property to my husband who is refinancing with Skipton Building Society. Can a transfer of equity be completed within four weeks?
- As things stand I have a joint Skipton Building Society mortgage with my step-brother and am looking into the option of him assuming responsibility for the outstanding mortgage and extracting myself from it, so as to enable me to buy a property with my fiance. The remaining mortgage is in the region 250k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty due?
Examples of questions in a conveyancing solicitor questionnaire relating to Skipton Building Society Transfer of Equity
Will there be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what amounts
Please provide the name(s) and addresse(s) of those who jointly own the property with you?
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Has consent been obtained from Skipton Building Society to the proposed transfer of equity?
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
General Advice to read in conjunction with the above Skipton Building Society transfer of equity Advice :
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 Skipton Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in violation of 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 conveyancing solicitor will check with Skipton 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 Skipton 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 valuation of the property at the time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Skipton Building Society your property may be repossessed.
Preparing the Transfer of Equity with a Skipton 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 Skipton 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 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.
