Recently asked questions relating to Landbay transfer of equity
- I intend to refinance my home in Blaenavon
moving from Barclays to Landbay. The flat is jointly owned but intend for it to be in my name only when I transfer. My husband is OK with this and is willing to transfer equity but neither of us want to incur conveyancer charges.
- At what point do I pay stamp duty chargeable for the transfer of equity in my property in my sole name which is taking place simultaneously with a switching mortgage with Landbay?
- I am planning on removing a name from a joint mortgage and the Landbay need me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Rye
lawyer to deal with the transfer of equity? They need to be on the Landbay conveyancing panel.
- I currently have a joint Landbay mortgage with my brother and am investigating the possibility of him taking on the whole mortgage and removing myself from it, to enable me to buy somewhere with my fiance. The remaining mortgage is in the region 200k, and the property value is about 450k. Is this a transfer of equity? Is land tax payable?
- My ex are looking to get a conveyancer in place for a refinance with Landbay. Transfer of Equity conveyancing is also necessaryI have used the different comparison based tools and the results are from all over UK. How necessary is it to instruct a conveyancer local to us?
- What is the process for having someone removed off the title documents to a house where the home loan is with Landbay
- Our mortgage broker has suggested using their conveyancer for our Transfer of Equity plus remortgage with Landbay - Surely it’s advisable to just instruct them?
Examples of questions in a conveyancer form relating to Landbay Transfer of Equity
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
Please provide the name(s) and addresse(s) of anyone to be extracted from the title deeds?
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?
Is the transfer of equity subject to a court order? If yes please supply a copy
Has consent been obtained from Landbay to the proposed transfer of equity?
Can you provide the details of anyone who jointly owns the property with you?
General Advice to read in supporting the above Landbay transfer of equity Advice :
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 conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.
If the transfer of equity is made as a result of 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 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 varies based on the valuation of the property at finalisation of the transfer of equity conveyancing.
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 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 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.