Common questions relating to Landbay transfer of equity
- My current home loan is with Landbay. Can I transfer equity to someone under eighteen years old?
- I jointly own a property in Ampthill , with a Landbay loan with my former partner. Him and his fiance are going to buy me out. We had approval from Landbay to remove my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Landbay (supposedly). Can we deal with the Land Registry formalities?
- My Landbay home loan we jointly entered into with ex, who has agreed to be removed and put the house in my name alone. Landbay will permit the transfer of equity to me solely. Do Landbay contact my employer to confirm my salary?
- I am selling my equity in house in Birmingham to the other co-owners fiance, they are reapplying to Landbay. We are in heated discussion as to who must pay the costs of the transfer of equity. Is this normally shared or is one of us liable for the fees for?
- What are my options where I am not happy with the conveyancer who did my transfer of equity conveyancing?
- I got my Decree Absolute in 2011. Foolishly I never got around to change the ownership from both our names to just in my name. I am ready to do that and so is she. Transfer-of-equity is needed. Landbay is willing to transfer the full equity in my name (financial checks done). Does my ex need a lawyer?
- My mother died half a year ago leaving a mortgage-free property to me and my brother 50:50. Having continues to reside at the property, there was a clause in the will specifying that the premisescould not be sold for 24 months after her death so he could continue to live there for a specified time frame. He now wishes to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the conventional way to acquire my share?
Questions that your lawyer is likely to ask in relation to your Landbay Transfer of Equity
If are going to hold 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 let us know of you wish us to draft you Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Where you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please give the details of anyone to be removed from the title deeds?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Important warnings to consider in further to 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 require that you obtain the consent of the landlord. If such restrictions are not strictly observed 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 lawyer 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 varies based 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 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 lawyer 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 conveyancer 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.