Landbay transfer of equity example support desk enquires
- My mother passed away early last year leaving a unencumbered semi to me and my step brother in equal shared. He has always lived in the property, there was a provision in the will saying the premisescould not be sold for 24 months following her death so he could continue to live there for a specified time frame. He now says he would like to remain in the house beyond the specified 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 home loan in the traditional way to purchase my share?
- Is it sensible to cancel my mortgage payments with Landbay as soon as a date for my remortgage and transfer of equity has been set?
- I am selling my share of a house in Woodside to the other co-owners fiance, they are sticking with Landbay being the the existing mortgage company. We are in heated discussion as to who should cover the fees for the transfer of equity. Should this be shared or is one of us obliged to cover the fees for?
- I understand we would need at least AP1 and TR1. Is this true?
- What do I do if I am unhappy with the conveyancing solicitor who carried out our transfer of equity transaction?
- My former wife are seeking to get a conveyancer in place for a remortgage with Landbay. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over England and Wales. Is it important to have a conveyancer local to us?
- What are the average legal fees are for a transfer of equity? I need to transfer equity and refinance - moving over to Landbay - and have been quoted Four Hundred pounds plus VAT by Landbay's approved conveyancing solicitor, Is this is a good price or not?
Sample of information requested in a conveyancing solicitor form concerning a Landbay Transfer of Equity
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Have you approached Landbay to obtain consent to the Transfer of Equity
Would you like us to draw up a Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?
Will there be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Please provide a copy of your National Insurance Number?
Information to consider in supporting the above Landbay transfer of equity Questions and Answers :
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 Landbay conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
Should the tenure of your property be leasehold, provisions in 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 the lease. This could trigger the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to an Order of the Court, then Insolvency Indemnity Insurance is not required. In other cases, 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 Landbay 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 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 finalisation of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Landbay.
Preparing the Transfer of Equity with a Landbay 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 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.