Frequently asked questions relating to Swansea Building Society transfer of equity

• Am I best advised stop my mortgage payments with Swansea Building Society as soon as a date for my remortgage and transfer of equity has been agreed?
• My dad died early last year leaving a loan-free property to me and my brother in equal shared. Having continues to reside at the property, there was a condition in her will specifying that the premisescould not be sold for 2 years after her passing so he could continue to live there for a while. He now says he would like to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the usual way to buy my half from me?
• Having been 5 years apart I have decided to transfer my share of the property to my husband who is re-mortgaging with Swansea Building Society. Could this transfer of equity be done in four weeks?
• Can you tell me how to have someone removed off the deeds to a house if the mortgage is with Swansea Building Society
• I own a property in Ampthill , with a Swansea Building Society loan with my ex partner. Him and his fiance are going to buy me out. We had approval from Swansea Building Society to substitute my name with hers. The transfer of equity has to be completed by a conveyancer for Swansea Building Society (supposedly). Can we do the Land Registry formalities?
• My financial adviser has suggested using their conveyancer for my Transfer of Equity plus remortgage with Swansea Building Society - won’t it be better to just use them?
• I am disposing of my share of a flat in Hendon to my co-owners fiance, they are sticking with Swansea Building Society being the the existing lender. We are debating as to who must pay the legal bill for the transfer of equity. Should this be split or is one party liable for the costs of?

Information that may be required from your lawyer could ask regarding your Swansea Building Society Transfer of Equity

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

Tax and Legal

There may be various tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Swansea Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach 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 conveyancing solicitor will check with Swansea 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 Swansea 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 Swansea 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 Swansea 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.