Recently asked questions relating to Suffolk Building Society transfer of equity

• As things stand I have a joint Suffolk Building Society mortgage with my brother and am investigating the option of him assuming responsibility for the outstanding mortgage and subtracting myself from it, so as to enable me to buy somewhere with my partner. The remaining mortgage is about 175k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax involved?
• Me and a friend got a joint mortgage with Suffolk Building Society on a house in 2013. I am now thinking of purchasing a property on my own and my friend would like to buy me out. Once we have agreed a figure what are the next steps? Would there be any potential problem with Suffolk Building Society with him being solely liable for the total mortgage as opposed to only part of it?
• My divorce has gone through as is the consent order. Now I need to deal with the transfer of equity for the property and the Suffolk Building Society mortgage. I have called Suffolk Building Society for the transfer of equity application. What are my next steps?
• In 2011 I bought a flat without my partner's name on the deeds. My lawyer claimed it is because she is not in the mortgage with Suffolk Building Society. I'm wondering is there any way that I can add her name on the title?
• My Suffolk Building Society home loan is in joint names with ex, who has agreed to come off the deeds and put the house in my name alone. Suffolk Building Society have consented to the transfer of equity to my individual name. Will Suffolk Building Society call my boss to verify my salary?
• Given that we have been four years separated I have decided to relinquish up my interest in the former home to my husband who is re-mortgaging with Suffolk Building Society. Can a transfer of equity be completed in four weeks?
• What are my options where I am not happy with the conveyancing solicitor who carried out our transfer of equity transaction?

Information that may be required from your conveyancing solicitor is likely to ask about your Suffolk Building Society Transfer of Equity

General Advice to read in in addition to the above Suffolk 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 Suffolk 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 landlord. If such conditions are not complied with you may be in violation of your covenants under 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 conveyancer will check with Suffolk 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 Suffolk 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 finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a Suffolk Building Society Mortgage

When it comes to preparing the the Land Registry documents your lawyer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Suffolk 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 provided on 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.