Sample questions relating to Landbay transfer of equity
- I am planning on removing a name from a joint mortgage and the Landbay need me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Heathfield
lawyer to deal with the transfer of equity? They need to be on the Landbay conveyancing panel.
- What are the average legal charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Landbay - and have been quoted Four Hundred pounds plus VAT by Landbay's appointed lawyer, Is this a reasonable price?
- At what stage do I cover the costs of stamp duty payable for the transfer of equity in my house in my name alone which is taking place simultaneously with a switching mortgage with Landbay?
- What do I need to do when it comes adding or removing names (transfer of equity) to or from my Landbay mortgage account?
- My partner and myself have 50:50 shares in a investment property. I am a top rate tax payer. Ideally I wish to do a transfer of equity into her name to reduce our tax on rental income. If Landbay are happy with this the legal fees are inexpensive. What are the implications when we sell? As I would no longer be on the title documents am I giving up my CGT relief.
- I co-own a flat in Blaenavon
, with a Landbay mortgage with my ex partner. He and his fiance are going to buy me out. We had approval from Landbay to remove my name with hers. The transfer of equity has to be completed by a lawyer for Landbay (apparently). In order to save fees can I do the Land Registry change?
- I am hoping to refinance my maisonette in Sedgefield
changing from Natwest to Landbay. The apartment is currently in joint names but intend for it to be in my name only when I transfer. My husband has agreed to this and is willing to sign a form but neither of us want to get a second conveyancing solicitor involved.
Sample of information requested in a conveyancing solicitor questionnaire concerning a Landbay Transfer of Equity
Has consent been obtained from Landbay to the proposed transfer of equity?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please give the details of anyone who jointly owns the premises with you?
Has one of the registered owners died? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Is there to be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Caveats to be read in conjunction with the above Landbay transfer of equity Info :
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 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 landlord. If such conditions are not complied with you may be in breach of the lease. This could potentially result in 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 market value of the property at the time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Landbay your property may be repossessed.
Preparing the Transfer of Equity with a Landbay 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 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 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.