Questions and answers: West Bromwich Building Society transfer of equity
- I purchased a flat with my cousin in 2009 Since purchasing the property, we have both got married. We are now intending to do a transfer of equity so my name comes off the West Bromwich 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?
- I am in the process of removing a name from a joint mortgage and the West Bromwich Building Society need me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Ampthill conveyancing solicitor to deal with the transfer of equity? They need to be on the West Bromwich Building Society conveyancing panel.
- My partner and myself have equal shares in a BTL. I am a top rate tax payer. Preferably I would like to complete a transfer of equity to her sole name in order mitigate tax on rental income. Assuming West Bromwich Building Society are fine with this the legal fees are inexpensive. However what happens when we sell? Would my GGT relief be lost.
- As things stand I have a joint West Bromwich Building Society mortgage with my brother and am looking into the option of him assuming responsibility for the whole mortgage and removing myself from it, so as to enable me to buy a property with my soon-to-be-wife. The remaining mortgage is in the region 250k, and the property value is about 600k. Is this a transfer of equity? Is land tax involved?
- How much the typical conveyancing costs are for a transfer of equity? I need to transfer equity and refinance - moving over to West Bromwich Building Society - and have been quoted £250 plus VAT by West Bromwich Building Society's appointed lawyer, Is this is a good price or not?
- Can I apply to borrow more money from West Bromwich Building Society as part of a Transfer of Equity?
- West Bromwich Building Society have just agreed I can take over the home loan on the house. I have applied for a transfer of equity but is this a transfer of ownership of the house on top?
Examples of information requested in a conveyancer form relating to West Bromwich Building Society Transfer of Equity
Where you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please inform us if you are making any payment for the Transfer of Equity and to whom and notify us any such sums?
Please provide a copy of your National Insurance Number?
Have you approached West Bromwich Building Society to seek consent to the Transfer of Equity
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Important warnings to consider in conjunction with the above West Bromwich 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 West Bromwich 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 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 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 West Bromwich 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 West Bromwich 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.
If you do not keep up the payments on your mortgage with West Bromwich Building Society your property may be repossessed.
Preparing the Transfer of Equity with a West Bromwich 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 West Bromwich 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 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.
