Common questions relating to Landbay Partners transfer of equity

• I jointly own a apartment in Timperley , with a Landbay Partners loan with my former partner. He and his new partner are going to buy me out. We had consent from Landbay Partners to remove my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Landbay Partners (apparently). Can we do the Land Registry change?
• What legal advice do I need when doing a transfer of equity where the home loan is to remain with Landbay Partners?
• When it comes to transfer of equity conveyancing involving a remortgage with Landbay Partners should I be invoiced value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
• What are my options where I am not happy with the conveyancer who handled our transfer of equity conveyancing?
• I currently have a joint Landbay Partners mortgage with my brother and am looking into the possibility of him taking on the outstanding mortgage and subtracting myself from it, so as to enable me to buy somewhere with my soon-to-be-wife. The outstanding mortgage is approx 250k, and the property value is in the region 500k. Is this a transfer of equity? Is stamp duty involved?
• My divorce has gone through as is the consent order. Now I have to address the transfer of equity at the HMLR and the Landbay Partners mortgage. I have called Landbay Partners for the transfer of equity application. What do I do now?
• Am I best advised cancel the direct debit for my mortgage with Landbay Partners as soon as a date for my remortgage and transfer of equity has been agreed?

Examples of information requested in a lawyer questionnaire concerning a Landbay Partners Transfer of Equity

General Advice to read in further to 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 premises

If your property is leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such restrictions are not strictly observed 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 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 varies based on the valuation of the property at the conclusion 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 conveyancing solicitor 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Content 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.