Questions and answers: Landbay Partners transfer of equity

• Do I need legal representation when doing a transfer of equity where the home loan is to remain with Landbay Partners?
• I intend to remortgage my flat in Timperley changing from Birmingham Midshires to Landbay Partners. The home is jointly owned but I would like it to be in my name only as and when I remortgage. My former partner is OK with this and is willing to transfer equity but neither of us want to get a second conveyancing solicitor involved.
• I jointly own a property in Ampthill , with a Landbay Partners loan with my ex husband. Him and his new partner are going to acquire my share. We had approval from Landbay Partners to substitute my name with hers. The transfer of equity needs to be completed by a conveyancer for Landbay Partners (supposedly). In order to save fees can I do the Land Registry formalities?
• Will I have to pay any charges for a Transfer of Equity where the current home loan is with Landbay Partners?
• Two years ago I bought a house without my fiance’s name on the title documents. My conveyancer advised it is due to the fact that she was not in the loan offer with Landbay Partners. I'm wondering is there any way that I can add her name on the title?
• What is the process for having someone removed off the deeds to a house if the home loan is with Landbay Partners
• Landbay Partners have today agreed I can take over the mortgage on the house. I have applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry on top?

Information that may be required from your conveyancer may ask regarding your Landbay Partners Transfer of Equity

General Advice to read in supporting the above Landbay Partners transfer of equity Questions and Answers :

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 Landbay Partners conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not strictly observed 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 Landbay Partners 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 Landbay Partners 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 transaction.

Preparing the Transfer of Equity with a Landbay Partners 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 Landbay Partners 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 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.